Investors continue to assess the performance of the Magnificent 7 stocks – Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA) – given their dominant position in their respective industries and their impact on the broader market. Using TipRanks’ Stock Comparison Tool, we placed Nvidia, Microsoft, and Alphabet against each other to find the “Strong Buy” Magnificent 7 stock with the highest upside potential, according to Wall Street.
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Nvidia (NASDAQ:NVDA) Stock
Shares of chip giant Nvidia have risen 32% year-to-date, as the company continues to deliver strong growth driven by robust demand for its graphics processing units (GPUs), which are required to support the AI boom.
However, NVDA stock has pulled back about 12% over the past month due to concerns about elevated valuations of AI stocks and rising competition. Notably, reports that Meta Platforms is considering using Google’s Tensor Processing Units (TPUs) dragged down NVDA stock recently. Nonetheless, several analysts remain bullish on NVDA stock, as they are optimistic about the company’s innovation, opportunities in sovereign AI, and strategic deals, including the $100 billion partnership with ChatGPT maker OpenAI (PC:OPAIQ).
Is NVDA Stock a Buy or Sell?
Bank of America analyst Vivek Arya agrees that while the reports about Google’s TPUs intensify the competition in the AI chip space, he remains bullish on Nvidia, Broadcom (AVGO), and Advanced Micro Devices (AMD) stocks. The 5-star analyst noted that Nvidia is trading at about 25x the market multiple, despite its potential to deliver more than 40% revenue and earnings per share (EPS) growth. Arya disagrees with this valuation of Nvidia as “another run-of-the-mill franchise.”
With 39 Buys, one Hold, and one Sell recommendation, Nvidia stock scores Wall Street’s Strong Buy consensus rating on TipRanks. The average NVDA stock price target of $257.72 indicates about 46% upside potential.
Microsoft (NASDAQ:MSFT) Stock
Tech giant Microsoft delivered better-than-expected results for the first quarter of Fiscal 2026, with the company’s Azure cloud unit generating a 40% revenue growth. The company’s cloud business is gaining significantly from the ongoing AI boom. Remarkably, revenue from Azure and other cloud services surged 34% to $75 billion in Fiscal 2025.
However, Microsoft’s massive spending to build AI infrastructure is weighing on investor sentiment. The company expects its capex growth in Fiscal 2026 to be higher than the spending in the previous year.
Is Microsoft Stock a Buy, Sell, or Hold?
Recently, Bernstein analyst Mark Moerdler reiterated a Buy rating on Microsoft stock with a price target of $645. The analyst believes that demand for MSFT’s Azure is robust, but the company’s ability to capture it is underappreciated. However, Moerdler noted that MSFT’s ability to turn the demand into revenue is “bounded” by data center capacity. The analyst also thinks that the differentiated features of Microsoft’s AI platform will make Azure the preferred choice for both AI and non-AI workloads. Moerdler is also optimistic about the prospects of O365 Copilot, which is still being developed.
Currently, Wall Street has a Strong Buy consensus rating on Microsoft stock based on 33 Buys and two Holds. The average MSFT stock price target of $629.98 implies 28% upside potential. MSFT stock has risen 17% year-to-date.
Alphabet (NASDAQ:GOOGL) Stock
Alphabet stock has risen 20% over the past month and is up 69% year-to-date. The surge in GOOGL stock is driven by the release of its Gemini 3 AI model, the rollout of the seventh generation of its TPUs (Ironwood), and reports about Meta Platforms considering using Google’s AI TPUs. Moreover, Warren Buffett’s Berkshire Hathaway (BRK.B) revealed that it owns a $4.3 billion stake in Alphabet, boosting investor sentiment.
Also, the demand induced by the ongoing AI wave is bolstering the company’s cloud business. Interestingly, Q3 2025 marked the first time that Alphabet’s quarterly revenue crossed the $100 billion mark. Moreover, Google Cloud ended the third quarter with a backlog of $155 billion, reflecting its strong momentum.
However, some analysts are concerned about GOOGL stock’s valuation following the recent rally.
What Is the Price Target for GOOGL Stock?
Recently, KeyBanc analyst Justin Patterson reiterated a Buy rating on GOOGL stock with a price target of $330. Patterson said, “The Full Stack Advantage Is Bearing Fruit.” The 4-star analyst noted that Google has long emphasized that its full-stack approach to AI creates meaningful advantages. The release of Gemini 3 underscores this advantage, as the new model set benchmarks, is now available in AI Mode in Search, and features an IDE (integrated development environment) called Antigravity for improved coding experience.
“In our view, Google is demonstrating it can make AI tools broadly available to consumers, developers, and enterprises concurrently while delivering attractive financial returns,” said Patterson.
Overall, Wall Street has a Strong Buy consensus rating on Alphabet stock based on 31 Buys and seven Holds. The average GOOGL stock price target of $312 indicates a downside risk of 2.6% from current levels.
See more GOOGL analyst ratings
Conclusion
Wall Street is bullish on all three Magnificent 7 stocks discussed here. Currently, analysts see higher upside potential in NVDA stock than in the other two Mag 7 stocks. Despite concerns about growing competition, most analysts remain bullish on Nvidia due to its dominant position in the AI chip market, continued innovation, and strategic deals.