NVIDIA Corporation (NASDAQ:) became the first company in the world to surpass a $4 trillion market capitalization during yesterday’s trading session, as the stock hit a new all-time high of $164.42. Since bottoming in April—during peak market anxiety over Trump’s tariffs—Nvidia has now rebounded by over 88%.
It’s worth noting that yesterday was marked by renewed tariff concerns following major new announcements from Donald Trump. However, slightly dovish Fed Minutes released later in the day helped lift investor sentiment during the second half of the session.
Compared with the start of the year, Nvidia has posted a gain of over 21%, making it the second-best performer among the Magnificent 7, behind Meta Platforms (NASDAQ:).
However, this performance marks a clear slowdown compared to last year’s 171% surge, or the 239% increase recorded in 2023. Moreover, both analysts and valuation models suggest limited further upside for Nvidia at current levels.
The same applies to most of the Magnificent 7, which have all shown strong upward trends over the past three months, but also appear to have limited potential based on analysts’ outlooks and the InvestingPro Fair Value model, which aggregates several recognized valuation frameworks:
Source: InvestingPro
Nvidia, Meta Platforms, Microsoft (NASDAQ:), Tesla (NASDAQ:), and Apple (NASDAQ:) currently show negative potential according to InvestingPro Fair Value, while Amazon (NASDAQ:) and Alphabet (NASDAQ:) show only limited upside.
When it comes to average analyst price targets, none of the Magnificent 7 stocks show negative potential, but none appear to offer substantial upside either. Alphabet has the highest potential, with an average target suggesting a 12% increase from current levels.
Although the ongoing AI boom and other tailwinds could continue to support Nvidia and its peers, these tech giants may no longer be the most explosive opportunities for the next phase of the bull market in tech stocks.
It’s Time to Think Outside the Box to Find the Best Technology Stocks
Today, the most attractive opportunities may lie in lesser-known names, such as those identified by the Tech Titans strategy, available to InvestingPro subscribers.
This strategy uses AI to identify the most promising U.S. tech stocks each month—on the 1st—and provides clear and detailed justifications for every stock entry or exit.
The results are, to say the least, impressive, with long-term performance exceeding +2,370%.
Source: InvestingPro
Over the years, the strategy has delivered standout returns by getting ahead of the crowd on some of the most popular names of 2023–2024:
And several major wins have already emerged this year, including:
Recent results speak for themselves: 95% of the stocks identified by the strategy at the beginning of June finished the month higher. July is also off to a strong start, with nearly as many winning positions already.
In addition to its performance, ProPicks AI stands out because every decision is justified. For example, a position in Axcelis was closed on July 1 with a +46.6% gain—and came with a full rationale.
Source: InvestingPro
Finally, the Tech Titans strategy is just one of over 30 AI-managed strategies available, covering both thematic and regional focuses. This makes it easier for investors with different goals and risk appetites to find a strategy that fits their needs.
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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belongs to the investor. We also do not provide any investment advisory services.
