Story
Nvidia Shows Highest Fair Value Upside Among Magnificent 7, Analysis Finds
Summary
An analysis from Investing.com indicates Nvidia has a potential 33.7% upside to its fair value, leading the Magnificent Seven, while Tesla and Apple appear significantly overvalued based on the model.
Nvidia Corp. (NVDA) possesses the most significant potential upside among the Magnificent Seven stocks, with a fair value estimate 33.7% above its recent trading price, according to an analysis by Investing.com. The data suggests a wide divergence in valuations across the mega-cap tech group, with Amazon.com Inc. (AMZN) also showing upside while Tesla Inc. (TSLA) and Apple Inc. (AAPL) appear overvalued.
Valuation Rankings
Based on fair value models and closing prices from September 16, 2026, the analysis presents a clear hierarchy. Nvidia leads with a substantial valuation cushion, while several of its peers are trading at or above their estimated intrinsic worth.
The ranking of the Magnificent Seven by fair value upside is as follows:
- Nvidia (NVDA): +33.7%
- Amazon (AMZN): +12.0%
- Microsoft (MSFT): +9.7%
- Meta Platforms (META): -3.6%
- Alphabet (GOOGL): -5.0%
- Apple (AAPL): -22.7%
- Tesla (TSLA): -28.2%
Leaders and Laggards
AdNvidia's leadership in the ranking is supported by a fair value estimate of $285.88 per share, compared to its closing price of $213.90 used in the analysis. The model notes its forward price-to-earnings (P/E) ratio of 23.0x is lower than some peers, despite its stronger potential upside. Amazon ranked second, with a fair value of $275.38 suggesting a 12.0% upside from its price of $245.96.
In contrast, the models flagged Tesla and Apple as cautionary tales. The analysis indicates Tesla has the largest potential downside, with a fair value gap of -28.2%. Apple followed with a gap of -22.7%, suggesting that the current market prices for both companies have already incorporated substantial expectations for future growth.
Context for Investors
The fair value figures represent model-driven estimates of a stock's intrinsic worth and are not price targets or a timetable for market movements. Such models are one of many tools investors use to assess valuation.
The significant spread, from a 33.7% upside for Nvidia to a 28.2% downside for Tesla, highlights the market's differing views on the future growth and profitability of the individual Magnificent Seven components, despite their collective influence on major indices.
Read next
More on Stocks
West Faces Soaring Prices, Supply Gaps for Critical Metals Three Years After Chinese Curbs
Three years after Beijing restricted exports of gallium and germanium, Western nations face prices up to ten times 2023 levels and a significant supply deficit, despite efforts to launch new production.
Goldman Sachs Downplays S&P 500 'Earnings Bubble' Fears, Forecasts Slower Growth
Goldman Sachs analysts argue that while some U.S. corporate profits are elevated, the S&P 500 is not in an "earnings bubble" and is poised for continued, albeit slower, growth driven by profits rather than valuation expansion.
TSX Futures Edge Higher as Falling Oil Prices Temper Inflation Concerns
Futures for Canada's main stock index saw a slight increase, supported by a third consecutive day of declines in crude oil prices, which has eased investor concerns about persistent inflation.
Morgan Stanley Downgrades Orange on Slower Growth, Rising Leverage Concerns
Morgan Stanley has downgraded French telecom operator Orange SA to "underweight," citing a projected slowdown in profit growth, increased balance sheet leverage, and intensifying competition in Spain.