Calpers cuts exposure to Magnificent Seven as AI jitters intensify

The California Public Employees' Retirement System (Calpers) reduced its combined direct holdings in the Magnificent Seven tech stocks by 26% in the first half of 2026, citing stretched valuations and concerns over the sustainability of the AI investment boom. The move adds to pressure on neocloud providers like CoreWeave and Cipher Digital, which fell in Monday's pre-market trading after Elon Musk warned of tightening financing for AI data center companies.