Mega-cap stocks are those with a market capitalization of $200 billion or more. Most of these stocks are associated with large, well-established companies with strong track records. They generally rank among the leading players in their respective industries. Due to their sheer size, mega-cap stocks are often considered safe bets during uncertain macroeconomic times. Using TipRanks’ Stock Comparison Tool, we placed Nvidia (NVDA), Amazon (AMZN), and Microsoft (MSFT) against each other to find the mega-cap stock that could deliver the highest upside.
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Nvidia Stock (NASDAQ:NVDA)
Nvidia stock has rallied about 33% year-to-date, thanks to solid demand for the company’s graphics processing units (GPUs) that are required to train and build AI models. Continued momentum in the company’s data center segment, opportunities in Sovereign AI, innovation, and optimism about the resumption of H20 chip sales to China are expected to drive future growth.
All eyes are now on Nvidia’s Q2 FY26 earnings on August 27. Wall Street expects the semiconductor giant to report earnings per share (EPS) of $1, reflecting a 47% year-over-year growth. Revenue is projected to rise by 52.3% to $45.7 billion.
Is NVDA Stock a Strong Buy?
Heading into the Q2 FY26 earnings, Bank of America Securities analyst Vivek Arya reiterated a Buy rating on Nvidia stock with a price target of $220. The 5-star analyst expects Nvidia to generate Q2 revenue of $47 billion, higher than the consensus estimate of $45.8 billion, backed by the continued ramp of Blackwell and robust cloud spend. Arya expects mid-teens quarter-over-quarter growth in Q3 revenue to $54 billion (versus the Street’s estimate of $52.5 billion), driven by Blackwell Ultra volume ramp. He sees the potential for Q3 FY26 revenue to reach $57 billion to $60 billion if H20 shipment officially resumes.
Overall, Arya sees a healthy beat and raise, driven by continued strength in Blackwell/Ultra ramp, rising and diversifying AI capex, and expanding pipeline and margins. He also expects Nvidia to benefit from the potential H20 resumption in the second half of FY26 ($5 billion-$10 billion incremental revenue). However, Arya cautioned that the H20 sales may be subject to potential security/backdoor probes by Chinese regulators and could also become increasingly uncompetitive over time as local competition emerges.
Nvidia stock earns a Strong Buy consensus rating, backed by 34 Buys, three Holds, and one Sell recommendation. The average NVDA stock price target of $185.79 indicates 4.2% upside potential from current levels.
Amazon Stock (NASDAQ:AMZN)
Last week, e-commerce and cloud computing giant Amazon reported better-than-expected revenue and earnings for the second quarter of 2025. However, AMZN stock fell following the Q2 results, as the company’s outlook and the growth in Amazon Web Services (AWS) cloud division failed to impress investors, especially after rivals like Microsoft’s Azure delivered stellar performance for the June quarter.
Nonetheless, Amazon is optimistic about the road ahead and is increasing its AI spending. The company is mainly investing in building out the infrastructure needed to support AI demand.
What Is the Price Target for Amazon Stock?
In reaction to the Q2 print, Stifel analyst Mark Kelley slightly lowered the price target for Amazon stock to $260 from $262 and reiterated a Buy rating. The 5-star analyst noted that corporate-level Q2 results were “very healthy,” with revenue and operating income exceeding the high-end of the guided range. Kelley added that Q3 guidance was mixed, with revenue surpassing expectations and operating income lagging estimates.
Kelley highlighted that AWS’ revenue growth was a disappointment, given heightened expectations heading into the print, with Microsoft’s Azure and Alphabet’s (GOOGL) Google Cloud Platform (GCP) both posting about 400 basis points of acceleration in the June quarter. Looking ahead, Kelley added that record Prime Day performance supports the healthy Q3 top-line outlook, and advertising growth continues to accelerate. The analyst is pleased with the continued strength in Amazon’s North America segment and the International margin expansion. Kelley sees a continued runway from here, with AI and robotics improvements presenting a steady tailwind.
Based on 43 Buys and one Hold recommendation, Amazon stock earns a Strong Buy consensus rating on TipRanks. The average AMZN stock price target of $264.21 implies 23.6% upside potential from current levels. AMZN stock is down about 3% year-to-date.
Microsoft Stock (NASDAQ:MSFT)
Tech giant Microsoft impressed investors with its stellar results for the fourth quarter of Fiscal 2025. The company attributed its Q4 FY25 results to cloud services and AI strength. Notably, revenue from Azure and other cloud services grew 39% (at constant currency) in Q4 FY25. In fact, Microsoft highlighted that Azure revenue rose 34% to surpass $75 billion in the full year, fueled by AI-led tailwinds.
With solid momentum in its underlying business and robust demand for cloud computing and AI tools, Microsoft is well-positioned to deliver solid growth and impressive margins.
Is Microsoft Stock a Buy, Hold, or Sell?
Following the Q4 print, UBS analyst Karl Keirstead increased the price target for Microsoft stock to $650 from $600 and reiterated a Buy rating. The 5-star analyst noted that for the second consecutive quarter, the company surprised with a significant 4-point Azure growth rate beat. However, Keirstead contends that MSFT’s guidance of 37% Azure growth for the September quarter looks conservative. He stated that the company attributed Azure’s upside to core or non-AI demand, especially citing the large enterprise on-premise to Azure workload migrations.
Keirstead added that MSFT’s total revenue growth of 17% (at constant currency) was “extraordinary,” given the company’s scale. He also highlighted the company’s upbeat margin performance and robust backlog and bookings growth. “This was as clean as Microsoft quarters get and represents a positive read-through to AWS and several other peers,” said Keirstead.
Overall, Wall Street has a Strong Buy consensus rating on Microsoft stock based on 33 Buys and one Hold recommendation. The average MSFT stock price target of $624.11 indicates 18.3% upside potential. MSFT stock has risen 25% so far in 2025.
Conclusion
Wall Street is bullish on all three mega-cap stocks discussed here. Currently, analysts see higher upside potential in Amazon stock than in Microsoft and Nvidia. Despite AWS-related disappointment in Q2, analysts remain bullish on AMZN stock. Their optimism is supported by the company’s dominance in e-commerce, AI-led tailwinds in the AWS business, and the lucrative advertising business.