Magnificent Seven Stocks Facing Market Challenges Amid Tariffs

Investors eyeing the Magnificent Seven stocks may find opportunities as tariffs loom. Nvidia and Alphabet, both down over 20%, show potential for long-term gains despite market challenges. Examining their current positions suggests a strategic buy-the-dip approach could be prudent.

Date: 15-04-2025

AI Rating: 8

The report highlights several key aspects that could influence stock prices in the near term. Notably, it mentions the **Earnings Per Share (EPS)** figures for both Nvidia and Alphabet, stating that Nvidia's impressive revenue growth highlights its strength in the AI sector. Nvidia's data center business generated record revenue of $115.2 billion for fiscal year 2025, marking a significant growth of 114% from the prior year, showcasing a robust revenue trajectory. Meanwhile, Alphabet's EPS was reported as $8.04, with the firm suggesting it operates at a P/E ratio of 19.5, notably lower than some of its competitors in the Magnificent Seven. This lower valuation may present a buying opportunity for investors looking for value in a tech-heavy portfolio. On the subject of **Net Income**, specific figures weren't disclosed, but the substantial revenue boosts for both companies signal potentially strong net income growth in their respective quarters. Moreover, the rising concern over tariffs, as reported, could affect overall profit margins for Nvidia and Alphabet. However, it is noteworthy that products from Nvidia are reportedly exempt from these tariffs, alleviating some immediate financial pressure. **Free Cash Flow (FCF)** and **Return on Equity (ROE)** were not clearly delineated in the text; therefore, we will not directly address them here. In conclusion, while the potential economic slowdown might inject volatility into the market, the inherent strengths of these companies make them attractive candidates for long-term investment. As Nvidia's and Alphabet's positions remain favorable, investors may consider a more strategic long-term approach in light of current market conditions.

Stocks: NVDA GOOGL