The Magnificent Seven of the largest mega-cap tech stocks in the world are seeing their worst stretch since 2022, with Microsoft (MSFT) down 17% and Amazon (AMZN) down nearly 14%. Goldman Sachs has identified three catalysts that could reverse this trend and return to market leadership in mega tech. The biggest catalyst is the recognition of AI monetization, which investors have been waiting for for years without seeing clear evidence of this. Goldman Sachs also highlighted the potential for a significant re-rating of the group due to guidance from AI revenue doubling year over year. The firm predicts that capex spending peak will be reached in the second half of 2026, with Amazon forecasting capex of $200 billion this year, a 56% jump year-over-year, while Meta has committed to spending between $115 billion and $135 billion on AI infrastructure. Goldman also highlighted signs of progress across the group, with Q4 results showing advertising revenue surging 24% year-Over-year to $58.1 billion. It also noted that Goldman's prediction that Q1 and Q2 earnings reports will be the turning point for the group. The company's economists predict US GDP growth of 2.6% for 2026 and that the macro backdrop is expected to shift towards secular growth stocks over cyclical value plays.