Is This Mag7 Stock Still a Buy?

It seems like everyone owns NVDA. So is it still a buy?

It's a fair question.

Nvidia (NASDAQ: NVDA) has been the defining stock of the AI era. Everyone knows the story. Everyone owns the stock or wishes they'd bought it earlier. And after a run like this one, the instinct is to assume the easy money is made, and that buying now means buying someone else's gains.

Here's why that instinct might be wrong. According to our Zen Ratings system, NVDA is an A rated Strong Buy … with some important caveats. 

Let’s dig into the fundamentals to see exactly what’s going on under the hood, and whether or not NVDA is still investment-worthy.

Here’s the first thing that you need to know…

Why the Mag 7 Has Lagged

The Magnificent 7 have had a complicated 2026.

Sentiment on these stocks has been very negative, with the market's concerns centered on their ever-rising capital budgets and whether AI spending can sustain at current levels. Microsoft (NASDAQ: MSFT), Meta (NASDAQ: META), Alphabet (NASDAQ: GOOGL): all are running massive capex cycles to build AI infrastructure, and investors are increasingly asking whether the returns will justify the spend.

That skepticism has weighed on the entire group. Mag 7 stocks have broadly underperformed the market this year even as their underlying businesses have kept delivering.

Nvidia has been caught in the same sentiment drag … despite having almost nothing in common with the actual problem investors are worried about. In fact, it’s a beneficiary of the capex spend of the other players.

The Bear Case for Mag 7 Is the Bull Case for NVDA

Here's the part that gets missed.

The concern about hyperscaler capex (Microsoft spending $80 billion on data centers, Meta lifting guidance to $125-145 billion) isn't a threat to Nvidia. It's the revenue line.

Every dollar of AI infrastructure spending by the hyperscalers flows, in large part, directly to Nvidia. The company's investors are worried about overspending are Nvidia's best customers. The bear case for Mag 7 broadly is the bull case for NVDA specifically.

Nvidia's most recent quarter posted $81.6 billion in revenue, up 85% year over year, with data center revenue of $75.2 billion, and the company is on track to generate nearly four times the revenue in a single quarter that it generated in an entire year just four years ago.

The stock has consolidated near its highs. The business hasn't consolidated at all.

The Valuation Is More Reasonable Than It Looks

This is where most investors get the analysis wrong.

Nvidia looks expensive on a trailing basis. On a forward basis the picture is different. The forward P/E sits around 24x, right around the industry average. For the fastest-growing large company in market history, that may not be an outrageous price to pay.

Our system gives NVDA a B in Value, which reflects exactly that. Not cheap, not stretched. Reasonably priced for what you're actually getting.

The C in Growth is worth addressing directly, because it looks wrong at first glance. Our Growth grade weights trailing metrics alongside forward indicators. For a company where earnings have accelerated so dramatically, trailing measures don't fully capture the trajectory. What the grade reflects is the rate of change beginning to normalize off an extraordinary base, not a fundamental slowdown.

The real competitive story isn't in the numbers anyway. It's in CUDA.

Every AI model trained on Nvidia hardware creates switching costs that compound over time. The entire AI software ecosystem (the frameworks, the libraries, the tooling) is built around CUDA. That's not a temporary advantage. Every new model trained, every new deployment built on Nvidia infrastructure deepens it.

What Our Ratings Are Saying

NVDA scores an A overall.

The A in Financials is the anchor. 71% gross margins and 60% operating margins. These numbers reflect a business with genuine pricing power and structural competitive advantages, not a momentum story held together by narrative. The Financial Grade is one of our favorite metrics for predicting future stock gains.

The B in Value says the stock is reasonably priced for what you're getting. The B in Momentum and Sentiment say the market is starting to re-engage after the consolidation.

The D in Safety is the honest caveat … same flag as any high-beta semiconductor name. This is a volatile stock that moves hard in both directions. It's not a defensive position. Size it accordingly.

Bottom Line

Is Nvidia still a buy?

The Mag 7 malaise has created a consolidation that the underlying business hasn't justified. Revenue up 85%. Data center demand still accelerating. CUDA moat deepening with every new model trained. Forward valuation is in line with peers … not the stretched multiple the bears assume.

Our ratings say yes. A-rated, A in Financials, B in Value. The business keeps compounding while the sentiment narrative works itself out.

That's usually when the right call is to stay long.

[Add NVDA to your watchlist] 

[See all top-rated Semiconductor stocks]

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