Top Two Stocks from the Magnificent Seven with Higher Growth Prospects, Says Wall Street

The Magnificent Seven Stocks: Microsoft and Nvidia Highlighted as Undervalued

The Magnificent Seven stocks, including Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla, have shown strong long-term returns. Analysts suggest that Microsoft (NASDAQ: MSFT) and Nvidia (NASDAQ: NVDA) are currently undervalued, with average price targets of $559.93 for Microsoft, indicating a potential upside of approximately 45%, and $301.62 for Nvidia, suggesting a nearly 43% increase from current levels.

Microsoft’s AI business is on a growth trajectory, exceeding a $37 billion annual run rate, which reflects a 123% increase year-over-year. The company’s Azure platform also reported a 40% year-over-year revenue growth and a cloud backlog of $627 billion, up 99% year-over-year. Nvidia, meanwhile, is capitalizing on the AI infrastructure expansion with a potential $20 billion in CPU revenue and a $200 billion addressable market, alongside maintaining dominance in the GPU segment.