The 2 Magnificent Seven Stocks With the Most Upside Potential, According to Wall Street
Prosper Junior Bakiny, The Motley Fool
Sat, July 11, 2026 at 10:05 AM GMT+5:30
5 min read
The Magnificent Seven stocks are tech-adjacent corporations so named because they are leaders in their respective industries and have posted exceptional returns over the long run. The group includes Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Meta Platforms (NASDAQ: META), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), andTesla (NASDAQ: TSLA). Several of them haven’t performed particularly well this year, but many analysts remain bullish on their prospects, with most setting average price targets that imply reasonable upside from current levels. The two most undervalued companies in this group — according to Wall Street — are Microsoft and Nvidia. Should investors follow The Street’s advice and buy shares in both companies?
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1. Microsoft
Microsoft’s average 12-month price target (according to Yahoo! Finance) is $559.93, while its current price is about $385. For those counting at home, that implies an upside of about 45%. Interestingly, even the company’s lowest target of $400 is above its current stock price. Wall Street clearly thinks Microsoft is deeply undervalued, but many investors are skeptical. One argument against the company is that <a href="https://todaytrendnews7.com/micron-ceo-sanjay-mehrotra-announces-250-billion-investment-for-expanded-artificial-intelligence-ai-memory-chip-development/" title="Micron CEO Sanjay Mehrotra Announces $250 Billion Investment for Expanded Artificial Intelligence (AI) Memory Chip Development”>artificial intelligence (AI) will replace many of its products. But what we have seen so far suggests otherwise.
Microsoft is evolving with AI, incorporating it into its services. That could make it a stronger company. And for what it’s worth, Microsoft is already capitalizing on its AI-related work. The company’s AI business is growing fast and exceeded an annual run rate of $37 billion in its latest period (the third quarter of its fiscal year 2026, ending March 31), up 123% from the year-ago period
That still represents a fairly small percentage of Microsoft’s annual revenue, but at the pace at which this segment is growing, it could help the company maintain solid momentum over the medium term
Meanwhile, Microsoft’s Azure business is also firing on all cylinders, posting a 40% year over year revenue increase in its latest quarter. The tech giant ended the period with a cloud backlog of $627 billion, up 99% year over year. The business isn’t in trouble at all, and given Microsoft’s deep, long-standing enterprise relationships, innovative capabilities, and significant free cash flow of almost $73 billion over the trailing-12-month period, it is well-positioned to continue riding the AI and cloud computing tailwinds as it expands and transforms its products to make them even more valuable to its clients.
