The consensus trade of the last decade, long Magnificent Seven, long AI capex winners, is breaking down.

For the first time in a generation, Goldman Sachs analysts highlighted that the technology sector doesn’t just look beaten up.

It now looks cheap.

In a research note published Tuesday, Goldman’s equity strategy team, led by Peter Oppenheimer, made the case that the selloff in tech giants has opened a valuation window not seen in over 50 years.

From Market Darlings To Market Doubts

After years of dominating returns, mega-cap tech stocks, NVIDIA Corporation (NASDAQ:NVDA), Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Amazon.com Inc. (NASDAQ:AMZN), Meta Platforms Inc. (NASDAQ:META), Alphabet Inc. (NASDAQ:GOOGL) and Tesla Inc. (NASDAQ:TSLA), have entered a period of relative underperformance.

"Confidence in the so-called Magnificent 7’s ability to outperform the rest of the U.S. market forever has started to be questioned, leading to falling stock correlations and rising dispersion between the dominant companies," Oppen

Since the start of 2025 and up to the onset of the Iran war, the U.S. equity market had already begun underperforming other major regions, reversing the dominant post-financial crisis trend.

But the technology sector’s underperformance went deeper.

According to Goldman’s ...