These Magnificent Seven Members Still Look Cheap
Microsoft (MSFT) and NVIDIA (NVDA) are highlighted for attractive valuations despite strong growth. NVIDIA reported $96.2B revenue, up 106% YoY, with Data Center revenue at $89.0B. Microsoft's cloud revenue grew 32% YoY. Both trade at discounts to their 5-year medians, with strong earnings growth expected. Apple (AAPL) is noted as a stable alternative.
How this was made
The 30-second read
Why it matters
Both companies delivered earnings beats, suggesting continued momentum in AI‑driven growth.
Market read
Earnings beats for NVDA and MSFT may trigger short‑term buying pressure in tech indices.
What to watch
Potential supply‑chain constraints for NVIDIA and macro‑economic headwinds for Microsoft.
Background
The article reviews recent earnings of two Magnificent Seven members, highlighting valuation attractiveness.
Ticker impact
NVIDIA reported Q4 revenue of $96.2B (+106% YoY) and EPS $2.22 (+120% YoY), beating estimates.
Potential short-term rally as investors digest the beat.
Large-cap earnings beat with high growth rates typically drives price appreciation.
Microsoft posted 18% YoY revenue growth and 23% EPS growth, with Intelligent Cloud revenue $39.3B beating forecasts.
Likely modest upside as market re‑prices cloud growth expectations.
Earnings beat on a key segment (Intelligent Cloud) often supports price gains.
Market effects
AI‑related hardware and cloud services sectors gain confidence from the strong results.
U.S. tech sector likely to see uplift in near‑term trading.
Reinforces global AI investment narrative, supporting related equities worldwide.
Counterpoint
Valuations remain elevated; a pullback could occur if growth slows.
Key entities
- CompanyNVIDIA
AI hardware leader reporting record revenue.
- CompanyMicrosoft
Cloud services giant reporting strong cloud growth.
