The Magnificent 7 Trade is Done. But These 2 Tech Stocks are Still Worth Buying

The Magnificent Seven trade is rolling over like we’ve never seen, with your average Mag Seven member off by over to 10% in the past week. Indeed, Trump tariffs served up on what he called Liberation Day is part of the reason why the Mag Seven are in such a world of pain. And while the broad markets are plunging deeper into correction territory, I do think that the now unloved cohort known as the Mag Seven may actually be oversold enough to start buying.

Sure, tariff troubles are hitting tech where it hurts. But with Treasury Secretary pointing the finger at tech instead of tariffs, many investors may be wondering if the latest batch of tariff news is merely the pin that burst the supposed AI bubble that some floated around earlier in the year. Sure, tech multiples were in need of small correction of sorts, but tariffs seem to have made the correction far more violent and perhaps drastically overdone.

Undoubtedly, technology stocks were coming in way too hot going into 2025, but it’s impossible to ignore the elephant in the room, which is tariffs. Indeed, Apple (NASDAQ:AAPL) suffered one of its worst single-day plunges in recent memory, shedding close to 10%. The decline had tariff written all over it, especially with the larger-than-expected tariffs (34%) to be imposed on China.

The Mag Seven and QQQ crumble on tariffs

While tech valuations were somewhat frothy prior to the latest 16.5% plunge in the Invesco QQQ Trust (NASDAQ:QQQ), I think it’s safe to say that valuations are actually now looking all too bad at these levels. Many in the Mag Seven group actually look severely oversold and likely overdue for a relief bounce at some point down the line.

Of course, it’s all about tariffs right now. If news breaks that Apple will be exempt (there’s a fairly reasonable chance of this given they were exempt from tariffs during Trump 1.0) from stiff tariffs on Chinese imports, the 10% drop could be quickly reversed. In any case, it’s a highly uncertain time for the tech titans as investors bail on the names with the expectation that tariffs will eat their way into earnings for the quarters to come, essentially derailing them while they were on track to seize the AI boom.

In this piece, we’ll look at three tech names within the Mag Seven that I believe are still worth buying, as the Mag Seven acronym falls apart, with some members of the once-revered group of former market darlings less likely to recover than others.

Apple

Apple took a tariff hit straight to the chin. Combined with AI delays and the likely pause of the iPhone supercycle, the stock looks like a top sell within the Mag Seven. It’s as though investors have concluded that there will be no exemptions this time around for the Cupertino-based giant. Dan Ives of Webush Securities views tariffs as “worse than the worst-case,” but isn’t ruling out exemptions this time around.

In any case, Ives is focused on the longer-term AI opportunity, which many panicked investors seem to be losing sight of in light of the recent barrage of bad news. Sure, AI delays and tariffs paint a grim picture for Apple. But it’s too soon to bail on the name with the assumption of a worst-case scenario (no exemptions). Though Apple stock looks untimely and perhaps unfit for the impatient, it will see better days.

Nvidia

Here we are: Nvidia (NASDAQ:NVDA) stock has shed more than 30% of its value. If you told yourself you would have bought such a dip at the start of the year, what’s stopping you now? Tariffs, DeepSeek, and increased competition are all scary headwinds that probably won’t resolve quickly. However, if they do, you probably won’t be able to buy the generational AI stock at a 30% discount to its highs.

With analysts expecting a margin recovery and high hopes for Blackwell and Rubin (Blackwell’s successor due for the next year), perhaps it’s time to focus on the AI trade, which I believe hasn’t been this neglected since ChatGPT kicked off the AI race. It’s all about tariffs right now. Perhaps it’s distracting investors from buying the dip in NVDA while shares are going for a mere 25.5 times forward price-to-earnings (P/E). Regardless of how tariffs play out, Nvidia strikes me as a long-term winner as the AI boom continues on with or without sweeping tariffs.

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