The threat of tariffs sent a ripple through American markets in early March, with the S&P 500 trading 6% below its new high seen in mid-February. While most investors prefer a bull market, bear markets present unique buying opportunities, especially when shares of market makers like the Magnificent Seven see dips in price.
The Magnificent Seven is a group of high-performing, influential companies with mega-chip market capitalizations. Due to their size and dominance in their respective industries, these companies tend to see less volatility during periods of economic turbulence compared to smaller competitors in the same industry.
Despite this trend, these three Magnificent Seven stocks are trading near their 50-day lows. Let’s examine each, its underlying fundamentals and whether analysts rate it as a buying opportunity.
NVIDIA Takes Another Hit, Sees Shares Start to Recover Wednesday
Once a major market outperformer, shares of NVIDIA (NASDAQ: NVDA) have tumbled more than 20% in the last month. First was the release of DeepSeek, a Chinese AI system featuring twice the computing power of models released by American companies like OpenAI, created at a fraction of the cost. Shares of NVIDIA fell in late January as analysts expressed concern that NVIDIA’s AI chip dominance status was in danger.
[content-module:Forecast|NASDAQ:NVDA]Now, shares of NVIDIA are seeing another price decline as threats of international tariffs shake investors’ confidence in supply chain reliability. On Wednesday, shares of NVIDIA were trading at about $113 per share, close to their 50-day low of $107.
Despite recent price problems, analysts remain exceptionally confident in NVIDIA’s resilience, with upside estimates indicating that the general consensus is that the current dip is an overcorrection.
The current consensus price target of $171.69 is more than 49% above the current trading price, with the company also maintaining a Moderate Buy consensus rating.
Prior to DeepSeek’s introduction, institutional investments in NVIDIA were on a positive trend. Investors added $103 billion in shares to institutional portfolios in quarter four of 2024, up from $26 billion in share purchases in the previous quarter.
Short interest trends also indicate positive potential for NVIDIA, with short interest trending downward since January 15th.
Apple Shares Dip to New Low Following Analyst Downgrade
Another tech giant experiencing a streak of declines in share valuations, Apple (NASDAQ: AAPL), saw a new 50-day low trading price of $217.83 per share Wednesday morning following a major analyst downgrade. Morgan Stanley lowered its price target on the stock from $275.00 to $252.00 per share after the company announced delays to its AI-boosted Siri upgrade.
[content-module:Forecast|NASDAQ:AAPL]While Morgan Stanley has downgraded Apple, this sentiment is not shared among all analysts.
Consensus ratings put Apple at a Moderate Buy, with a potential upside of 12.38%.
This analyst confidence may be supported by Apple’s most recent earnings announcement, which beat analyst estimates by $0.04 per share.
With a trailing EPS of $6.30 and a P/E Ratio of 34.41, analysts expect earnings to grow an additional 12.64% next year.
To keep up with these estimates, Apple will need to catch up with competitors with its own AI rollout.
Institutional buying in previous quarters has been optimistic for Apple, with buying increasing to $117 billion in shares in the fourth quarter of 2024.
Sliding Used Car Prices, Brand Reputation Injure Tesla Share Prices
[content-module:Forecast|NASDAQ:TSLA]As protests continue at Tesla (NASDAQ: TSLA) dealerships across the country, share prices for the electric vehicle manufacturer have slumped close to their 50-day low price of $222 per share.
On Wednesday afternoon, analysts at J.P. Morgan lowered their targets on Tesla, suppressing share prices during an overall tech market correction.
Of these three market leaders, analysts seem to be the most hesitant about Tesla.
While analysts rate Tesla a Hold, the market still predicts positive price movements of up to 30.59% in the next year.
As Elon Musk promises to double U.S. production in the next two years to boost himself into Trump’s favor, analysts will remain focused on Tesla’s supply chain partners to gauge how able the company is to stick to its plans.
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