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Special Situations & Volatility Investor, Wall Street Background
The Magnificent Seven's bull run is only starting, because investor sentiment is unusually bearish even as the group closes at all-time highs. AAII bearish sentiment is at its 2026 high, a level last seen in April, the same squeeze setup that preceded the prior run. For Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla, this is the time to increase market exposure, not cut it. x.com x.com
Amazon's AWS, advertising and AI-chip growth make it a potential Mag 7 catch-up name. AWS is up 37% year over year, advertising 26%, and the AI chip business is at a $25B-plus annualized run rate. It is one of the few Mag 7 stocks that has not made a significant move in quite some time. x.com
Tesla trades in another universe among the Magnificent 7, at 190x forward earnings and a 7.0x PEG. By comparison, Nvidia looks expensive at 25x but is the cheapest on PEG at 0.6x, with Meta, Amazon, Alphabet and Microsoft between 0.9x and 1.6x and Apple at 3.2x. x.com
Nvidia's robotics and autonomous-vehicle opportunities are not yet baked into its valuation. The stock looks super cheap here and ranks first among the Magnificent Seven for investment attractiveness. x.com x.com
Amazon looks cheap against its expected long-term earnings growth if that growth proves accurate. Its five-year consensus growth is the fastest in the Magnificent 7 after Nvidia, while its 0.90 forward P/E-to-growth ratio is the lowest excluding Nvidia. x.com x.com
Tesla trades at about 200x forward earnings, a bubble valuation that stands out against the rest of the Magnificent Seven, which per @DividendTalks now trade at 20-29x. x.com
The Magnificent Seven's growth, fortress balance sheets and central role in the AI buildout now come at multiples that finally make sense. They have barely bent when high-beta names lose 10% in a session; that resilience makes their valuations down here one of the better opportunities in this market. x.com
The Magnificent Seven will keep making investors rich and should consistently outperform the market, because they are super cheap relative to the S&P 500's P/E. The group covers Nvidia, Amazon, Apple, Microsoft, Tesla, Alphabet and Meta, along with the MAGS ETF that holds them. x.com
Apple trades at the richest valuation in the Mag 7 by almost every measure apart from Tesla, and nothing justifies that premium over its peers. Its forward P/E is 34.3, against under 20 for Meta and Nvidia, even as Apple is about a solid day's gain away from overtaking Nvidia's market cap. x.com
Microsoft is undervalued alongside Meta and Nvidia, at 22.4 times forward earnings and a PEG ratio of 1.39. That compares with Alphabet at 30.8x, Apple at 30.9x and Amazon at 32.1x forward earnings, while Tesla at 180x is highly overvalued. x.com