I confess that I’m a tech stock bull — even after the sector’s poor performance this year as fears of overspending by some of the biggest names have taken their toll. Consumer and energy stocks are the biggest drivers of the market right now, with tech stocks taking a bit of a breather.
Does that mean you should cycle your money out of tech stocks? Not at all. Every sector — even the entire market — sees a dip every now and then. That’s the cyclical nature of the market at work.
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And while it can be tempting to try to time the market and move your money back and forth, it’s rarely a profitable way to invest. More often than not, you’ll mistime your purchases and miss out on a chance to profit from the rebound.
You can see this dip clearly when you consider the Roundhill Magnificent Seven ETF, which holds stocks from all seven companies in the “Magnificent Seven.” Shares in the ETF are down nearly 9% right now from their all-time highs.
But I think there’s at least one Magnificent Seven stock that’s worth a buy right now. And that’s the biggest company of them all, Nvidia (NASDAQ: NVDA).
There are some tech stocks, like Amazon, Alphabet, Meta Platforms, and Microsoft, that are down these days because of concerns that they are overspending on the advanced infrastructure needed to build out data centers to operate state-of-the-art artificial intelligence (AI) platforms. Some analysts are concerned that these companies, which have plans to spend up to $700 billion this year alone, won’t make enough money on the back end to make the investment worthwhile.
But Nvidia doesn’t have that issue because it’s the company that is selling key parts of the infrastructure — specifically, the graphics processing units that hyperscalers need to buy by the hundreds to bundle into their data centers. That means Nvidia’s profits are pretty much locked in — particularly when you consider the extreme demand that tech companies have for Nvidia’s products.
Sales in the fourth quarter of fiscal 2026 (ended Jan. 25) were up 73% from a year ago to reach $68.1 billion. And that’s before you factor in Nvidia’s new Rubin chip that is going on sale this year. The Rubin chip is more powerful and efficient than Nvidia’s Blackwell and Hopper chips that continue to drive the company’s sales.
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