The S&P 500 posted a 16% gain in 2025, with several high-profile components standing out. Among the so-called ‘Magnificent Seven’ stocks, Alphabet (GOOG, GOOGL), the parent company of Google, saw its stock price surge by 65%, while Nvidia (NVDA) continued its strong performance with a 39% increase. Looking back, these two companies were among the stocks to watch at the beginning of 2025. So, as we enter 2026, how do Wall Street analysts view the investment prospects of these seven giants?
Despite being the best performer among the ‘Magnificent Seven’ in 2025, analysts have turned cautious on Alphabet’s outlook for 2026. The stock’s average 12-month target price is only slightly above its current level, suggesting limited upside potential. Tesla (TSLA), which had the weakest performance last year, is expected by Wall Street to remain under pressure in 2026, ranking as the second-worst expected performer among the seven. The consensus target price implies a potential gain of only about 10%. As for Apple (AAPL), Wall Street believes the growth momentum from the second half of 2025 may be difficult to sustain, with the average target price reflecting an upside of approximately 11%.
In contrast, analysts are more optimistic about the other four companies. Amazon (AMZN) is expected to shake off last year’s sluggishness, with its consensus target price pointing to a potential gain of over 20%. After delivering nearly a 13% return in 2025, Meta Platforms (META) seems to be accorded higher growth expectations, with its average target price being 28% above the current stock price. Microsoft (MSFT) remains a Wall Street darling; among the 57 analysts surveyed by S&P Global in January, the vast majority gave it a ‘Buy’ or ‘Strong Buy’ rating. The consensus target price reflects an expectation for the stock to rise by about 31% over the next 12 months. Nvidia is also seen as poised to deliver strong returns again in 2026, with its average target price suggesting a potential upside close to 37%, nearly matching last year’s robust gain.
If Wall Street’s predictions are accurate, then Nvidia, Microsoft, and Meta would be the stocks to watch early in 2026, while Alphabet might warrant caution. Significant doubts may center on Alphabet. Although Wall Street holds conservative short-term expectations for the company, it itself is not lacking positive signals, and its actual performance may end up surpassing current Wall Street projections.
It is worth adding that Alphabet’s market capitalization recently surpassed $4 trillion, making it one of the few publicly listed companies in history to reach this scale. It currently stands alongside Nvidia above the $4 trillion mark. The achievement of this milestone is directly attributed to a significant collaboration in the field of artificial intelligence with Apple. The two companies will build the next-generation Apple Foundation Models based on Google’s Gemini models and cloud technology. Looking back over the past year, Alphabet’s stock experienced significant volatility—from declines influenced by macro policies, antitrust concerns, and competitive pressures, to a strong rebound driven by favorable legal rulings, proven AI capabilities, and solid core business data—ultimately achieving a 66% gain for the full year of 2025.
