Investors Pivot to Software and Specialized Semiconductors as Magnificent Seven Dominance Wanes

New York, Sunday, 25 January 2026.
As the reporting season accelerates, a critical rotation is emerging within the technology landscape. Strategists are increasingly favoring specialized semiconductor and software firms over the established “Magnificent Seven,” anticipating these overlooked sectors will drive the next phase of returns. With technology earnings projected to surge 31% in 2026, the market focus is transitioning from initial AI training infrastructure to inference and application utility. This week’s disclosures from industry titans like Microsoft and Apple, alongside the Federal Reserve’s interest rate decision, will determine the durability of this broadening investment thesis.