Wedbush Backs Nvidia and Microsoft Amid Mag 7 Selloff
Wedbush analysts issued a bullish call on Nvidia and Microsoft as Magnificent 7 stocks face broad market pressure.
Wedbush Securities issued a bold, contrarian buy call on Nvidia and Microsoft this week, arguing that the two battered tech giants represent significant upside even as the broader "Magnificent 7" cohort absorbs heavy selling pressure across Wall Street. The firm's analysts positioned the move as a high-conviction opportunity for investors willing to look past near-term volatility.
Both Nvidia and Microsoft have come under considerable pressure alongside the wider Magnificent 7 group — a cluster of mega-cap technology stocks that has driven much of the S&P 500's gains in recent years. A combination of macroeconomic uncertainty, rising interest rate expectations, and investor rotation out of high-multiple tech names has weighed on valuations across the sector.
Read more Tech Stocks Slide While Broader Market Holds Steady →
Wedbush's bullish stance centers on the longer-term structural demand for artificial intelligence infrastructure and cloud computing, areas where Nvidia's chips and Microsoft's Azure platform remain dominant. The firm sees the current drawdown as a buying opportunity rather than a signal of fundamental deterioration, suggesting the market has overcorrected in punishing these names.
The call carries particular weight given the scale of the selloff in AI-linked equities, which had been Wall Street darlings through much of 2023 and early 2024. Analysts at Wedbush appear to be betting that investor sentiment will stabilize and that the earnings power underpinning both companies remains intact despite the turbulent tape.
For retail and institutional investors alike, Wedbush's upgraded outlook on these two stocks may signal a potential inflection point — or at minimum, a contrarian anchor in a market still searching for direction. Continue reading at Yahoo.
