Among the Magnificent Seven stocks — Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Nvidia (NVDA), Meta Platforms (META), and Tesla (TSLA) — Microsoft is now the worst performer in 2026, with the stock down about 23% year-to-date. In comparison, Alphabet has held up much better and is up 1.5% so far this year.
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Alphabet’s Growth Is Driven by Cloud and AI Progress
While most tech giants are struggling to stay in positive territory, Alphabet has emerged as one of the more resilient members of the group. The stock rose about 4% in the latest session, helped by a broader market rally following news of a temporary ceasefire between the U.S. and Iran.
Alphabet’s strength is largely driven by its cloud business, which is becoming a key profit engine. In its Q4 2025 results, the company reported total revenue growth of 18% year-over-year to $113.8 billion. Google Cloud stood out, with revenue jumping 48% to $17.7 billion.
At the same time, progress in its AI models and tools is helping improve efficiency across its products. Another key driver is its partnership with Broadcom (AVGO). The two companies recently signed a long-term deal to develop custom AI chips through 2031, giving Alphabet more control over its infrastructure and costs.
According to TipRanks, GOOGL stock has a Strong Buy consensus rating based on 25 Buys and five Holds assigned in the last three months. At $378.19, the Alphabet average share price target implies almost 19.18% upside potential.
Microsoft: Worst Mag 7 Performer YTD
Microsoft (MSFT), on the other hand, is down over 23% so far this year, making it the weakest stock among the Magnificent 7. The decline has been driven by a mix of heavy AI-related spending, slower-than-expected returns, and broader pressure on tech stocks.
Investors are increasingly focused on rising capital spending, which is expected to remain high this year. At the same time, adoption of key AI tools like Copilot has been slower than expected, raising concerns about near-term growth.
Recent executive exits have also added to the cautious sentiment. Julia Liuson, who led Microsoft’s developer tools group and has been with the company for over three decades, recently announced she will retire in June.
Despite these challenges, analysts remain positive on the long-term outlook. According to TipRanks, MSFT stock has received a Strong Buy consensus rating, with 34 Buys and three Holds assigned in the last three months. The average Microsoft stock price target is $581.61, suggesting a potential upside of 55.37% from the current level.
