NVDA and AAPL: Billionaire Ken Fisher Scales Up His Multi-Billion ‘Magnificent 7’ Positions

There’s a lot of talk about frothy valuations right now, with U.S. stocks trading near a price-to-earnings ratio of 30. Many see that as a sign the bull market may be running out of steam, but Wall Street titan Ken Fisher is having none of it. The billionaire argues that valuations “don’t predict stocks’ direction – and they never have,” pointing to over a century of market history to make his case. In his view, today’s elevated P/Es offer far less insight than many assume.

To illustrate the point, Fisher cites a statistical measure called R-squared, which shows how much one variable explains another. A reading of 0 means there’s no relationship at all; 1.00 means a perfect, predictable link.

Looking back to 1872, the data shows that the S&P 500’s starting PE (based on the previous year’s earnings) has an R-squared of just 0.01 with the index’s return over the following 12 months. In practical terms, that means starting valuations have virtually no ability to predict one-year performance. Even when you widen the window to three or five years, the relationship remains extremely weak, with R-squared readings of only 0.03 and 0.02. That means only about 3% or 2% of what happens over those timeframes could even possibly be linked to starting PE levels. “Believing the reverse is just dumbness,” Fisher vehemently added.

All that is to say, Fisher is still loading up. Both Nvidia (NASDAQ:NVDA) and Apple (NASDAQ:AAPL) – already multi-billion holdings among his ‘Magnificent 7’ positions – have taken on even more weight in the Fisher Investments portfolio recently.

So, let’s get the lowdown on these two ‘Mag7’ stocks, and with a little help from the TipRanks database, we’ll see whether the Street also thinks Fisher’s moves make sense right now.  

Nvidia

Fears of an AI bubble are partly down to the unstoppable rise of Nvidia, as the chip giant has become widely regarded as the dominant force in AI. That is no idle boast, but merely a fact. The AI boom has turned this once-gaming-specialist into the world’s most valuable firm.

Nvidia is a pioneer in GPUs, originally building graphics chips for the gaming industry, but its march to world dominance really accelerated when it shifted its focus to the data center segment. As its processors proved ideal for training and running modern AI models, Nvidia moved from a niche hardware supplier to the center of the AI infrastructure boom, powering everything from cloud platforms to enterprise AI systems.

Its secret sauce lies not only in the strength of its chips, but in the fact it offers an entire ecosystem around them. Nvidia supplies the GPUs, the networking gear, and the software stack that ties everything together, making it easier for customers to build and scale AI systems. This combination has created a moat that competitors struggle to match.

The stock market gains, then, have come off the back of huge real-world adoption with a series of blockbuster earnings reports propelling the stock higher. The most recent readout featured another beat-and-raise display. In FQ3, revenue climbed 62.5% year-over-year to $57 billion, topping Wall Street’s estimate by $1.91 billion. On the bottom line, adj. EPS came in at $1.30, $0.04 above expectations. For FQ4, the company called for revenue of $65.0 billion, give or take 2%, ahead of the $61.84 billion the analysts were looking for.

Meanwhile, Fisher’s confidence in the NVDA story remains intact. In Q3, Fisher Investments purchased another 2,052,153 shares, lifting its position to more than 84.5 million shares – a stake now worth nearly $15 billion.

Mirroring that bullish stance, Stifel’s Ruben Roy, an analyst ranked among the top 1% on Wall Street, believes the “fundamental thesis is unchanged.” AI infrastructure demand is still accelerating (“clouds are sold out”), and following Nvidia’s FQ3 results, the 5-star analyst says the company remains uniquely positioned to capture that wave.

“Of the $51.2bn in AI-infrastructure revenue, NVDA communicated $2.0bn in Hopper sales and di-minimus $0.05bn in H20, with one-third of the remainder, ~$16.4bn, attributed to GB200 and two-thirds, ~$32.8bn, to GB300. The takeaway here is validation that demand for compute remains strong, amid AI-bubble fears. The Blackwell generation, earns ~$30bn/GW, with future generations likely to capture more per GW per management; in our view, this reaffirms our thesis and points to further growth in data center spend capture ($3-4tn TAM by 2030 per NVDA’s reaffirmed outlook) at least into the end of this decade,” Roy opined.

As such, Roy rates NVDA shares a Buy, while his $250 price target points toward 12-month returns of 41%. (To watch Roy’s track record, click here)

And he’s hardly alone. Aside from one Hold and one Sell, every one of the 39 other recent analyst reviews is bullish, giving Nvidia a resounding Strong Buy consensus. With an average price target of $257.72, Wall Street is eyeing ~46% upside over the coming 12 months. (See NVDA stock forecast)

Apple

In a way, it’s a natural transition from Nvidia to Apple, another tech pioneer that has spent long stretches at the top of the market-cap rankings. Yet, while Nvidia is closely associated with the AI boom, Apple’s own AI initiatives have been slower to convince investors, leading many to see the company as lagging in this arena.

Still, Apple has quietly been developing its own AI capabilities, under the banner of Apple Intelligence, which powers features across iOS, macOS, and its devices – from Siri and predictive text to image recognition and on-device personalization. Unlike its rivals, Apple leans on privacy-first, on-device AI instead of big cloud models, which has made its AI efforts less visible and not quite as exciting to investors.

Nevertheless, Apple has maintained its strength in other areas, with its ecosystem of hardware, software, and services continuing to generate strong results, as was the case in the fiscal fourth-quarter report (September quarter).

The company posted revenue of $102.47 billion, up 7.9% year-over-year and $220 million above expectations. EPS reached $1.85, ahead of the prognosticators’ forecast by $0.08. The company said that FQ1 revenue should increase between 10% and 12%, landing $136.7 billion and $139.2 billion, topping the $131.82 billion Street estimate.

Fisher must have liked all of that, as during Q3, his firm bought 886,473 AAPL shares, increasing its stake to ~54.4 million shares, worth about $15.2 billion.

Bank of America’s Wamsi Mohan, an analyst ranked among the top 2% on Wall Street, lays out several reasons why the outlook still looks favorable for this tech colossus.

“We remain bullish on shares of Apple heading into 2026 given (1) iPhone upgrades are tracking better than expected, (2) gross margins continue to move higher despite commodity headwinds, (3) March qtr should see even better GMs as tariffs abate further and mix shifts to Services, (4) AI enabled Siri will be available in 2026 and (5) A foldable iPhone is expected in Sep 2026,” the 5-star analyst explained. “Reiterate Buy on strong capital returns, eventual winner on AI at the edge and optionality from new products/markets.”

That Buy rating is accompanied by a $325 price target, a figure that factors in a 12-month gain of ~17%. (To watch Mohan’s track record, click here)

20 other analysts also back the bull case here, and with an additional 12 Holds and 2 Sells, the stock claims a Moderate Buy consensus rating. Going by the $289.17 average price target, a year from now, shares will be changing hands for a modest 4% premium. (See AAPL stock forecast)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.