A widely-followed financial commentary account, The Kobeissi Letter, published a bullish analysis on July 6, 2026, boldly predicting that the S&P 500 is poised to break above the 8,000 mark. The post quickly garnered over 73,000 views on X, sparking heated debate among the finance community.
Magnificent 7 Down 20%+ But S&P 500 Just 1% From ATH
For years, the Magnificent 7 — Apple, Microsoft, Nvidia and others — dictated the direction of U.S. equities. The Kobeissi Letter now highlights a major shift not seen since 2022: while many of these giants have pulled back more than 20% from recent highs, the S&P 500 sits only about 1% below its all-time high. The driver? Semiconductor stocks have quietly taken over as the new market leaders. According to the analysis, eight of the ten best-performing S&P 500 stocks this year belong to the chip industry.
Rotation Underway: Chip Stocks Surge as Tech Titans Rest
The letter describes this as a "constructive rotation." The Magnificent 7 are taking a breather rather than collapsing, while semiconductors explode higher, showing remarkable market breadth and resilience. When the tech heavyweights regain leadership and converge with chip strength, the combined force could easily push the index to 8,000, the author argues. The post concludes: "Asset holders keep winning."
Not everyone agrees. Some analysts questioned the word "quietly," noting that the semiconductor surge has been obvious for months. More cautious voices warn that chip stocks rely heavily on AI infrastructure spending. If AI demand proves to be a bubble, the rotation party without the Magnificent 7 could trigger a destructive chain reaction. As of now, bulls and bears remain sharply divided.