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Oleksandr Pylypenko

Ranking the Magnificent 7 Stocks for May 2025: See Which Mega-Cap Stars Still Boast ‘Strong Buy’ Ratings

The Magnificent 7 stocks — Amazon (AMZN), Microsoft (MSFT), Nvidia (NVDA), Meta Platforms (META), Alphabet (GOOG), Apple (AAPL), and Tesla (TSLA) — got off to a rough start this year. The launch of a lower-cost artificial intelligence (AI) model by Chinese start-up DeepSeek raised concerns about the level of spending in this space by major U.S. tech companies, leading to a selloff in the group. Later, President Donald Trump announced his sweeping reciprocal tariffs, which fueled broader market volatility and added pressure on Mag 7 stocks. The escalating U.S.-China trade tensions, culminating in a 145% tariff on all Chinese goods and China’s retaliatory tariffs reaching 125%, further weighed on the group. As a result, these stocks have been hit particularly hard amid concerns over the tariffs’ impact on their supply chains, business costs, and the global economy.

Shortly after reciprocal tariffs went into effect, Trump announced a 90-day pause on certain tariffs for most countries, excluding China. This sparked a relief rally in the Magnificent 7 stocks, with the group gaining over $1.5 trillion in market capitalization on April 10. Since then, numerous countries have lined up to negotiate in hopes of avoiding tariff increases. Last week, Trump said that agreements with Japan, South Korea, and India could be near. Also, China said on Friday it is assessing the possibility of trade talks with the U.S.

 

With recent positive signs that the trade war is easing, the outlook for the group seems to be improving. In this article, we rank the Magnificent 7 stocks based on Wall Street analysts’ consensus ratings and scores, highlighting which names still carry a coveted “Strong Buy” rating — and which may be falling out of favor.

#1-Ranked Magnificent Seven Stock: Amazon

Amazon (AMZN) stands as a global leader in e-commerce and cloud computing. The company operates a diverse business model, encompassing retail sales of consumer products through its online and physical stores, cloud services through AWS, and advertising and subscription offerings. AMZN’s market cap currently stands at $2.02 trillion.

Shares of the e-commerce and cloud services giant have slumped 14.4% on a year-to-date basis.

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Last Thursday, Amazon reported its Q1 earnings, delivering strong beats on both EPS and revenue. The company’s total revenue grew 8.7% year-over-year to $155.7 billion, beating Wall Street’s consensus by $580 million. All three business segments — North America, International, and AWS — showed solid growth, with the latter posting the fastest growth rate. Its GAAP EPS came in at $1.59, beating expectations by $0.23. Still, AMZN stock ended the following trading session little changed after the world’s largest online retailer provided a below-consensus Q2 operating income forecast and said it’s gearing up for a tougher business climate in the coming months.

Wall Street analysts hold a strongly bullish outlook on Amazon. Based on Barchart’s rating system, AMZN stock has a score of 4.83, which corresponds to a “Strong Buy” consensus rating. Among the 53 analysts offering recommendations for the stock, 46 rate it as a “Strong Buy,” five give a “Moderate Buy” rating, and the remaining two advise holding. The average price target for AMZN stock stands at $244.40, representing a 28.6% upside from the May 2 closing price.

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#2-Ranked Magnificent Seven Stock: Microsoft

With a market cap of $3.24 trillion, Microsoft (MSFT) is a dominant force in the technology sector, boasting a diverse portfolio spanning software, cloud computing, AI, gaming, and hardware. Notably, MSFT is among the pioneers targeting the AI market through its partnership and substantial investments in OpenAI.

Shares of the tech giant have gained 4.04% year-to-date, recovering from earlier losses driven by global trade tensions and AI worries.

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On May 1, MSFT stock jumped more than 7% after the company posted strong FQ3 results, fueled by continued strength in its cloud and AI business, especially Azure. Its total revenue rose 13.2% year-over-year to $70.06 billion, and GAAP EPS increased 18% year-over-year to $3.46, with both figures exceeding analysts’ expectations. The company also provided an upbeat FQ4 revenue growth forecast for the Azure cloud unit, signaling that the cloud business remains strong despite global trade tensions.

Wall Street analysts are overwhelmingly positive about Microsoft’s future. According to Barchart’s rating system, MSFT stock holds a score of 4.74, indicating a consensus rating of “Strong Buy.” Out of the 46 analysts covering the stock, 38 recommend a “Strong Buy,” four suggest a “Moderate Buy,” and the remaining four give a “Hold” rating. The mean price target for MSFT stock is $505.30, indicating upside potential of 16% from the May 2 closing price.

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#3-Ranked Magnificent Seven Stock: Nvidia

Valued at a market cap of $2.79 trillion, Nvidia (NVDA) is a premier technology firm known for its expertise in graphics processing units and artificial intelligence solutions. The company is renowned for its pioneering contributions to gaming, data centers, and AI-driven applications. NVDA’s technological solutions are developed around a platform strategy that combines hardware, systems, software, algorithms, and services to provide distinctive value.

Shares of the AI darling have dropped 14.9% YTD. 

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Nvidia has become a central figure in the ongoing trade war with China. A few weeks ago, the U.S. government notified the chipmaker that it must now obtain a special license to export its H20 accelerators, which were specifically designed for the Chinese market. As a result, the company announced it expects to take a $5.5 billion charge in its upcoming earnings report. Still, The Information reported on Friday that Nvidia has told major Chinese clients it is redesigning its AI chips to comply with U.S. export restrictions. Signs of a possible easing in U.S.-China trade tensions also provided some relief.

Despite geopolitical headwinds, Wall Street analysts remain bullish on Nvidia. Based on Barchart’s rating system, NVDA stock has a score of 4.68, corresponding to a “Strong Buy” consensus rating. Out of the 44 analysts covering the stock, 37 recommend a “Strong Buy,” two advise a “Moderate Buy,” four suggest a “Hold,” and the remaining one gives a “Strong Sell” rating. The average target price for NVDA stock is $166.10, which suggests upside potential of 45.1% from the May 2 closing price.

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#4-Ranked Magnificent Seven Stock: Meta Platforms

Meta Platforms (META), previously known as Facebook, is renowned for its social media platforms like Instagram, Threads, and WhatsApp. Recently, however, it has pivoted from its social media dominance to focus on becoming a frontrunner in the emerging fields of virtual reality (VR) and the metaverse. It has a market cap of $1.5 trillion.

Shares of the Facebook parent have eked out a modest 2.9% gain YTD.

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On May 1, META stock climbed over 4% after the company reported better-than-expected Q1 results. The company posted sales of $42.31 billion, up 16% year-over-year, and reported GAAP EPS of $6.43, with both figures surpassing Wall Street expectations. Meta’s advertising sales helped ease Wall Street concerns over the effects of the Trump administration’s trade war, as it experienced continued growth in daily active users, ad impressions, and price per ad. The company also stated that, in response to the trade war, it is reassessing its suppliers and anticipating higher infrastructure costs.

Wall Street analysts maintain a positive outlook on META stock. According to Barchart’s rating system, META stock has a score of 4.66, which reflects a consensus rating of “Strong Buy.”  Among the 53 analysts providing recommendations for the stock, 45 rate it as a “Strong Buy,” two as a “Moderate Buy,” four recommend a “Hold,” and two consider it a “Strong Sell.” The stock has an average price target of $690.31, which indicates an upside potential of 15.6% from the May 2 closing price.

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#5-Ranked Magnificent Seven Stock: Alphabet

With a market cap of $2 trillion, Alphabet (GOOG) stands as a leading multinational technology company. It operates across three segments: Google Services, Google Cloud, and Other Bets. The Google Services segment, which accounts for the majority of the company’s total revenue, offers a broad range of products and platforms, including Search, Ads, Android, Chrome, YouTube, Gmail, Google Maps, Google Photos, and Google Play — serving billions of users globally.

Shares of the Google parent have fallen 12.4% YTD.

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Alphabet recently reported strong results for the first quarter of 2025, comfortably beating the top- and bottom-line estimates. The company reported revenues of $90.23 billion, a 12% year-over-year increase, while GAAP EPS rose 49% year-over-year to $2.81. Alphabet’s robust revenue and profit growth was fueled by AI investments, strong performance in Google Cloud, and resilient advertising revenue.

Wall Street analysts have deemed Alphabet a “Strong Buy,” with the stock earning a score of 4.64 under Barchart’s rating system. Among the 53 analysts covering the stock, 42 recommend a “Strong Buy,” three suggest a “Moderate Buy,” and the remaining eight give a “Hold” rating. The average price target for GOOG stock is $201.24, which is 21.4% above the May 2 closing price.

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#6-Ranked Magnificent Seven Stock: Apple

Founded in 1976, tech giant Apple (AAPL) has consistently set the benchmark in the technology sector. The company’s lineup includes flagship products like the iPhone, MacBooks, Apple Watch, AirPods, and iMacs — all integrated within the ecosystem of its highly profitable Services business. AAPL boasts a market cap of $3.07 trillion.

Shares of the iPhone maker have slid 20% YTD.

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Last Thursday, Apple released its FQ2 earnings results, reporting revenue of $95.4 billion, up 6% year-over-year, and GAAP EPS of $1.65 — both figures above Wall Street’s consensus estimates. However, the company failed to alleviate investor concerns over its major challenges, such as rising tariff costs and a slowdown in China. It reported weaker-than-expected FQ2 sales in China and projected $900 million in additional tariff-related costs for the current quarter.

Wall Street analysts remain mostly bullish on Apple. According to Barchart’s rating system, AAPL stock has a score of 3.95, which corresponds to a “Moderate Buy” consensus rating. Out of the 37 analysts covering the stock, 18 recommend a “Strong Buy,” four rate it as a “Moderate Buy,” 12 suggest holding, one advises a “Moderate Sell,” and two give a “Strong Sell” rating. The stock has a 15.2% upside potential to its mean price target of $236.53.

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#7-Ranked Magnificent Seven Stock: Tesla

Tesla (TSLA) is a prominent innovator dedicated to accelerating the global transition to sustainable energy. The company designs, develops, manufactures, leases, and sells high-performance fully electric vehicles, solar energy generation systems, and energy storage products. It also provides maintenance, installation, operation, charging, insurance, financial, and various other services related to its products. In addition, TSLA is increasingly focusing on products and services centered around AI, robotics, and automation. Its market cap currently stands at $925.1 billion.

Shares of the EV maker have slumped 30.6% YTD.

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Tesla’s brand reputation has taken a significant hit this year, largely due to CEO Elon Musk’s controversial political activities. And don’t overlook the intensifying competition in China, where Tesla is steadily losing market share to BYD (BYDDY). All of this was reflected in the company’s latest earnings report, which showed significant misses on both the top and bottom lines, along with a 20% year-over-year plunge in automotive revenue. Still, TSLA stock rose post-earnings after Musk committed to dedicating more time to making Tesla the world’s most valuable company, saying he would only spend “a day or two a week” on government matters. Though investors took some comfort from this announcement, many analysts believe Musk’s greater involvement in Tesla is unlikely to quickly resolve the brand’s damaged image.

Wall Street analysts are divided on Tesla stock. Based on Barchart’s rating system, TSLA stock has a score of 3.34, corresponding to a “Hold” consensus rating. Of the 41 analysts offering recommendations for the stock, 16 rate it as a “Strong Buy,” two advise a “Moderate Buy,” 13 recommend holding, and 10 assign it a “Strong Sell” rating. TSLA stock trades above its mean price target but has 61.9% upside potential to the Street-high price target of $465.

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On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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