Wall Street's famed 'Magnificent Seven' stocks may have earned a far less flattering nickname. John Roque, technical strategist at 22V Research, has launched a new name for the cohort that powered the 2020s bull market: the Maleficent 7. The call comes after a brutal June for Big Tech, with every member of the group in the red for the month. Microsoft Corp. leads the declines, down 21.6% and on pace for its worst monthly performance since December 2000.

Roque thinks Microsoft has the furthest to fall. The stock has traded below a downward-sloping 200-day moving average since February 2026. It was rejected at that falling average in early June and has dropped more than 18% since. It sits below its 50-day average too. The stock is now closing in on its March 2026 lows, a support level first reached in November 2023. By that measure, Microsoft has not made investors money in more than two and a half years. It also sits at a six-and-a-half-year low relative to the S&P 500.

Microsoft found support near $350 in April 2025 and again this past spring. Roque does not believe it holds. A break below $350 would, on his math, open the path to $250, measured down from the stock's failure near $450 in early June. That is roughly 30% below current levels.

The downgrade is not Microsoft's alone. Roque's renamed 'Maleficent 7 index', as closely tracked by the Roundhill Magnificent Seven ETF, trades below its 40-week moving average, which has begun to roll over. Momentum has turned, with bearish action relative to the S&P 500. Four of the seven names are down by double digits in 2026. Microsoft, Meta Platforms Inc. and Tesla Inc. hold the weakest technical scores. The three still higher on the year—Apple Inc., Alphabet Inc. and Nvidia Corp.—'aren't impressing anyone,' Roque said.

The fundamental story behind the slide is well documented: a capital-spending boom on AI data centers that is swallowing the free cash flow Microsoft once returned to shareholders. Roque's note adds a second signal. The chart, he said, is now confirming what the cash-flow math already implies.

Microsoft Corporation has secured a 20-year power purchase agreement with Chevron Corporation to develop Project Kilby, a co-located natural gas power facility in West Texas. The deal ensures a dedicated power supply of approximately 2.67 gigawatts for a Microsoft-operated data center, addressing the critical energy infrastructure needs of its expanding AI and cloud operations. By co-locating generation with the data center, the project is designed to provide reliable electricity while minimizing impact on the regional grid.

Project Details and Implementation

Chevron’s wholly owned subsidiary, Energy Forge One LLC, will oversee the development of Project Kilby. The facility will utilize a phased, modular approach to deliver capacity, with the majority of generation coming from large GE Vernova turbines. Additional capacity will be provided by Solar Turbines, a subsidiary of Caterpillar. First power delivery is anticipated in 2028, contingent upon Chevron’s Final Investment Decision, which is expected by the end of 2026.

Strategic Importance and Impact

The agreement underscores the extraordinary scale of energy infrastructure required to support hyperscaler AI buildouts. Noelle Walsh, Microsoft President of Cloud Operations + Innovation, stated that the rapid growth in AI and cloud, driven by customer demand, necessitates energy infrastructure that can scale quickly and reliably. The 2.67 GW capacity positions Project Kilby among the largest co-located natural gas power and data center developments in United States history.

Economic and Regional Benefits

The West Texas location leverages Permian Basin natural gas supply, offering cost and speed advantages. Project Kilby is projected to generate more than $10 billion in state and local tax revenue and support nearly 2,000 jobs in the region. This deal adds to a growing trend of Big Tech companies securing dedicated power capacity as capital expenditure commitments for AI infrastructure are expected to exceed $700 billion in 2026.