The Mag 7 Can Lead This Rebound, Buy Apple and Alphabet Stock, Says Pro

The Magnificent Seven stocks have done more of their fair share of the heavy lifting amid the latest rebound from the Trump tariff sell-off worsened by the infamous Liberation Day, which effectively saw Trump add salt into the wounds of a market already feeling the sting of prior tariff threats.

Though we’re nowhere near out of the woods with tariffs, it’s hard not to feel a sense of hope and optimism as Trump pulls back on the aggression while showing a greater willingness to cooperate. The sense of optimism has been nearly palpable for the Mag Seven, which have collectively climbed out of a bear market. The Roundhill Magnificent Seven ETF (MAGS), which is my preferred gauge for the group of seven high-quality tech titans, was down nearly 27% at its worst moment.

Today, after a robust tech-led rebound, the MAGS is off just shy of 7% from their highs. With the high-tech rebound in full swing, it may be tempting to take profits or get back into the tech trade, depending on your age and tolerance for risk.

Analysts are staying upbeat on the Mag Seven as they lead the market recovery.

A number of Wall Street pros think the Mag Seven stocks have legs to lead the markets higher on the year. Most notable among them has to be Wedbush Securities tech analyst Dan Ives, who’s been absolutely right to stand by the tech titans at their darkest moment just over a month ago.

Up ahead, he’s staying upbeat on shares of Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOG), two high-tech titans that have fallen drastically out of favor among investors year to date. Despite the partial market recovery, shares of AAPL and GOOG are still down around 13% and 12.5%, respectively, year to date.

Such negative year-to-date performance makes the two Mag Seven titans the worst performers in the Mag Seven for 2025 thus far. The big question going into the second half is whether they can catch up alongside the rest of the Mag Seven trade, as the headline theme (hopefully) shifts from tariffs announcements to trade deals.

Apple and Alphabet are worth sticking with as they’re primed for a “massive comeback”

Apple and Alphabet may be the new dogs of the Magnificent Seven for 2025. But Ives still has high hopes for the two firms that may very well be “primed for a massive comeback.” The bear case on Apple has been crystal clear these past few months, with investors hitting the panic button over the potential for the iPhone maker to get hurt as it gets caught in a trade war between the world’s two largest nations.

Despite the fear-driven headlines, though, Ives has stayed calm, citing optimism over Apple Intelligence and the more promising longer-term growth narrative. More recently, Ives stated that the U.S.-China trade agreement is a “dream scenario” for Apple. I couldn’t agree more. The willingness of Trump and Xi to play ball bodes very well for Apple as China looks to do its best to keep Apple from moving more production over to India.

If the U.S. and China ink a deal by the end of the current 90-day pause, I think Apple could have much more upside. Perhaps Ives’ prediction that Apple stock would hit new all-time highs within 18 months isn’t all too outlandish anymore, as we head into WWDC 2025 and an iPhone 17 release cycle that’s rumored to feature the most significant design changes (an “ultra-thin” iPhone is coming) in many years.

Alphabet stock hasn’t looked this cheap in a long time.

As for Alphabet stock, it’s in a major rut right now, down around 18% from its all-time highs, thanks in part to fears that AI search is coming for Google’s Search business. Add breakup fears into the equation, and it does feel like GOOG stock deserves to be the least magnificent of the Mag Seven.

In any case, Ives thinks GOOG stock, in particular, is ready to rise as the AI boom continues while the firm revs its many growth engines. Ives is right to focus on the longer-term narrative. Despite the more recent troubling regulatory headlines, Alphabet is still an AI juggernaut and one of the kings in the cloud. At 18.6 times trailing price-to-earnings (P/E), the stock is cheaper than many stocks lacking any growth drivers.

I share Ives’ optimism with Alphabet, a misunderstood company with more to gain than lose as Gemini levels up in the second half.

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