Since the beginning of this year, the fluctuating tariff policies of the Trump administration have put continuous pressure on the US stock market.

However, on Monday, the US stock market, led by the Technology "Magnificent 7", staged a strong counterattack, among which $Tesla (TSLA.US)$ surged nearly 12%, marking the largest increase since November 6 of last year. This is mainly attributed to President Trump's planned reciprocal tariffs to be launched on April 2, which may be milder than expected, leading to a significant warming of risk appetite in the US market.

Mike Wilson, chief investment officer of Morgan Stanley, believes that investors will return in large numbers to the US stock market, and the recently battered "Magnificent 7" stocks will become winners again.

Which of the Technology Magnificent 7 has the greatest upside potential?

As the "tariff deadline" of April 2 approaches, the US stock market may face a crucial turning point. By then, which of the Technology Magnificent 7 will have the most potential?

Specifically:

• $NVIDIA (NVDA.US)$The "potential" leads the Magnificent 7, with an average target price of $178.16, which leaves a 46.7% upside from the current price.

After Huang Renxun delivered the keynote speech at the GTC 2025 conference last week, several major Wall Street firms praised NVIDIA's unique ability to continue expanding its leading position in the AI field.

Morgan Stanley Analysts indicated that NVIDIA has strongly demonstrated that the demand for AI will experience multiple growth cycles. "The market's view of NVIDIA remains conservative at present, and we are uncertain what factors will prompt a reversal in market sentiment. However, it is certain that the demand for AI will continue to be strong."

Wedbush analysts pointed out that all releases, including those related to robotics, further indicate that the AI revolution has not slowed down. The analysts believe that this is not just about NVIDIA itself, but a chain reaction in the Technology Industry. 'We estimate that for every dollar invested in NVIDIA chips, it will bring an 8 to 10 dollar multiplier effect across the entire technology ecosystem, with hyperscalers, Software, Datacenter construction, Cybersecurity, and Energy demands benefiting from up to 2 trillion dollars in AI capital expenditures over the next three years.'

• $Amazon (AMZN.US)$ The average target price is $271.5, with a 33.6% upside from the current price.

• $Microsoft (MSFT.US)$ The average target price is $509.41, indicating a potential upside of 29.6% from the current price.

Jefferies rated it as one of their "most popular Large Cap stocks," stating that although the recent performance has been poor, this provides an attractive Buy point. Analysts stated: "The growth momentum for Azure mainly comes from AI-driven Order backlog growth (Microsoft's Order backlog increased by 15% in Q4 2024, while the company's performance guidance has lowered risk. As for M365 Communications Cloud, we believe Copilot will continue to maintain a strong but gradual adoption pace and become more important in fiscal year 2026."

Jefferies Financial has set a Target Price of $550 for Microsoft and believes that despite Microsoft's significant investment in AI, its profit margins will continue to expand.

• $Alphabet-C (GOOG.US)$ The average target price is $216.5, indicating a potential upside of 27.4% from the current price.

Google previously announced the acquisition of Cloud Security startup Wiz for $32 billion, and Goldman Sachs still believes that Google is positioned favorably in the current (a mix of desktop and mobile applications) and future potential computing fields (AI/machine learning, personalization, and reducing friction between applications).

Goldman Sachs still argues that, in the long term, the combination of large-scale applications (integrating applications with over 1 billion users) and computational scale for investment and efficiency enhancement is still an undervalued dual narrative of AI, especially when transitioning from the "infrastructure" of AI monetization to the "platform" and "application" layers.

• $Meta Platforms (META.US)$ The average target price is $771.79, representing a 24.7% upside potential from the current price.

Meta Platforms is the only stock among the Magnificent 7 that has recorded gains year-to-date. According to reports, Meta announced that META AI will launch on WhatsApp, Facebook, Instagram, and Messenger in 41 European countries and 21 other regions, but currently limited to text-based chat functions.

Meta plans to release a separate Meta AI App in the second quarter. This marks a greater ambition for Meta CEO Zuckerberg in the AI field, hoping to compete with OpenAI's ChatGPT to become a "leader."

• $Tesla (TSLA.US)$ The average target price is $341.58, representing a 22.7% upside potential from the current price.

In the face of internal pressure from continuous declines, Musk encouraged employees to "hold onto stocks" during an all-staff meeting last Thursday, stating that the main model, Model Y, is expected to again become the "best-selling car in the world."

It is worth noting that Cathie Wood's Ark Investment Management remains Bullish on Tesla (TSLA.US) and expects the stock to reach $2600 within five years, nearly ten times its current price. Wood stated in an interview that robot taxis will account for 90% of Tesla's value in the next five years. She added on Tuesday that Tesla's initiatives in the field of humanoid robots have not been included in this price forecast.

• $Apple (AAPL.US)$ The average Target Price is $256.31, representing a potential upside of 16.1% from the current price.

Have the worst times for US Stocks passed?

Wall Street Analysts generally expect that investors may soon welcome a breather.

Morgan Stanley previously stated that it believes the worst period of US Stocks sell-off is over. The firm pointed out that the dollar exchange rate has recently fallen, and the depreciation of the dollar has historically had a positive impact on US corporate earnings.

Morgan Stanley analysts stated: "The relative underperformance of the US (stock market) is associated with weaker relative earnings revisions, which is partly due to the lagging effects of a strong dollar in the fourth quarter... This should provide favorable conditions for the correction of the US stock market, and it is also one of the reasons we believe that in the mid-to-short term, the performance of the US stock market will be better than that of other international developed markets."

"The earnings outlook for the 'Seven Giants' stocks seems to have improved. Wall Street Analysts stated that the earnings correction for large Technology stocks appears to be 'stabilizing' and may be nearing the bottom."

Michael Kantrowitz, Chief Investment Strategist at Piper Sandler, stated that the uncertainty of tariffs has been a key catalyst for the stock market sell-off over the past month. He will continue to focus on the clarity of these policies, as this is a critical turning point for the stock market potentially hitting the bottom. “Typically, when major catalysts are no longer an issue, the market can find a footing.”

However, analysts from Academy Securities believe that after the formal announcement of the tariff plan on April 2, the concerns arising from "uncertainty" will begin to dissipate, and market focus will shift to the potential follow-up impacts of the tariff policy, which may bring a wave of selling pressure to the global stock market.

Meanwhile, Jon Gray, President of Blackstone, warned investors not to make hasty decisions around Trump's tariff drama, but to wait for the results of the fundamental negotiations.

Gray stated, "Be a little patient. Observe the evolution of tariff diplomacy and make investment decisions over a longer period. I believe that the risk during such a period is that if you make some short-term moves, you will miss out on opportunities."

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