The “Magnificent 7” stock grouping declined on Thursday as tech stocks led the stock market lower. Out of the grouping, Tesla (TSLA) and Apple (AAPL) are most notable, as they had healthy climbs just one day prior. The hostilities in the Middle East have weighed on tech stocks for weeks, and that has continued this week as ceasefire talks remain on the burner.

Surging tech stocks carried the S&P 500 and Nasdaq composite to new records on Wednesday, a milestone in major indexes’ rebound from war-fueled losses. However, today has seen a bit of a pullback. On Thursday, Tesla (TSLA) stock fell, reversing some of its 8% gain from Wednesday’s session after shares were buoyed by CEO Elon Musk teasing the company’s AI5 chip.

Despite the call for light-speed movement on the project, Tesla sources say that the fab will begin manufacturing silicon by 2029 and then scale up. And adding to the challenge, Bernstein analysts claimed the entire project would require capital spending of $5 trillion to $13 trillion, an almost unimaginable sum. Hence, investors were concerned about how much the AI5 chip could set revenue back.

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As for Apple (AAPL), its upcoming earnings report is seen as a high-pressure event. As demand for the iPhone stays strong, services keep growing, and pressure builds around margins, costs, and the next big product cycle. Analysts are bullish on the upcoming report, expecting a $100 billion buyback, 5% dividend increase, and product upgrades, including AI integration. However, if it fails to deliver, AAPL could see its shares sink.

Furthermore, price forecasts ahead of the Apple Inc earnings report are already coming in hot. Bank of America recently raised Apple’s price target to $325, citing strong iPhone and Services growth. Bernstein also reiterated an Outperform rating for Apple with a $340 target, reinforcing confidence in its market strategy.