Key Points

Nvidia offers substantial earnings growth at an attractive valuation.
Microsoft trades near its lowest valuation levels in years.
Meta trades at a forward P/E ratio of just 18.
10 stocks we like better than Nvidia

The Magnificent Seven stocks form core holdings in many portfolios. These megacap leaders deliver strong earnings power along with sustained investor interest.

In the latest Hazeltree Crowding Report tracking institutional holdings, six of the seven Magnificent Seven stocks, excluding Tesla, ranked among the top 10 most popular long positions in May.

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Of those six, three stand out as especially attractive now: Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), and Meta (NASDAQ: META).

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1. Nvidia

All three stocks share a key trait: they trade at meaningful discounts.

Nvidia stock trades at just 23 times forward earnings, down from 40 a year ago. Its long-term valuation looks even better with a five-year PEG ratio of only 0.63. A PEG ratio below 1 indicates the stock is undervalued relative to expected earnings growth, and lower readings signal greater value.

This metric alone places Nvidia in the buy zone given its earnings strength. In the latest quarter, revenue rose 20 percent sequentially and 85 percent year over year while earnings jumped 214 percent year over year. For the current quarter, Nvidia expects revenue of $91 billion, an 11 percent sequential increase, and a gross margin of 74.9 percent, slightly below the prior 75 percent.

Looking ahead, analysts project 88 percent earnings growth for Nvidia this fiscal year to $8.96 per share. For fiscal 2028, Wall Street forecasts 42 percent earnings growth.

Analysts set a median price target of $300 per share for Nvidia, pointing to a 44 percent return over the next 12 months.

2. Microsoft

Microsoft stock has struggled this year, falling 21 percent year to date. The decline stems from its previously elevated valuation, concerns over heavy AI spending, questions about OpenAI profitability, moderating AI cloud growth, and other factors.

Most of these issues appear short term. In the latest quarter, Microsoft delivered strong results that beat estimates. Cloud revenue grew 29 percent year over year while Azure AI sales rose 40 percent. The company also restructured its OpenAI agreement, removing exclusivity and revenue-sharing obligations.

Microsoft expects double-digit revenue growth this fiscal year, including 5 percent sequential sales growth in the current quarter. Azure sales should rise 40 percent year over year now and accelerate in the second half of calendar 2026.

The standout feature remains Microsoft valuation. It trades at about 19 times forward earnings, near its lowest level in a decade.

This makes Microsoft stock a compelling buy at present.

3. Meta Platforms

Meta has faced recent pressure, with shares declining after a Financial Times report on AI fundraising that company officials labeled pure speculation.

Meta stock also fell about 5 percent after news that a senior AI executive was departing.

Overall, Meta shares are down 13 percent year to date, yet like Nvidia and Microsoft, the stock looks very inexpensive. Meta trades at just 18 times forward earnings with a PEG ratio of 0.82.

This valuation appears remarkably low for one of the world largest and most successful companies. In the latest quarter, revenue grew 33 percent and earnings rose 62 percent. Meta also expects 7 percent sequential revenue growth in the current quarter.

Expenses merit attention, as Meta projects a 41 percent spending increase to roughly $165.5 billion at the midpoint for this fiscal year. It also lifted its capital expenditure range to $125 billion to $145 billion from the prior $115 billion to $135 billion to support AI data centers.

Meta low valuation makes the stock difficult to ignore. Analysts set a median price target of $808 per share, implying 43 percent upside at the time of writing. Like the others, it represents a strong buy opportunity.

Should you buy stock in Nvidia right now?

Before purchasing Nvidia shares, consider this:

The Motley Fool Stock Advisor analyst team recently identified the 10 best stocks for investors to buy now, and Nvidia was not included. The 10 stocks selected could deliver substantial returns in coming years.

For example, when Netflix appeared on this list on December 17, 2004, a $1,000 investment at the time would now be worth $417,305. When Nvidia appeared on April 15, 2005, a $1,000 investment would now be worth $1,293,148.

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Stock Advisor returns as of June 20, 2026.

Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.