With tens of millions of funded accounts, Robinhood stands out as a leading platform for retail investors. Each month, the company updates its list of the top 10 most-owned stocks, which typically features substantial players in large technology and artificial intelligence sectors, notably those known as the “Magnificent Seven.”
This year, amid market fluctuations and a notable sell-off of major tech and AI stocks, analysts on Wall Street perceive a significant buying opportunity in two stocks heavily favored by Robinhood users.
Nvidia (NASDAQ: NVDA), currently the most-owned stock on the Robinhood platform, has solidified its standing as the largest stock by market capitalization globally. Recent research indicates that a remarkable 41 out of 43 Wall Street analysts rate Nvidia as a “buy,” with only one analyst issuing a hold rating and another a sell rating. The consensus suggests an average price target of approximately $274 per share, reflecting a potential upside of around 54% from recent levels.
Nvidia has garnered attention following its unprecedented earnings report this year, which included a substantial increase in guidance for the upcoming quarter. CEO Jensen Huang has ambitious projections, anticipating $1 trillion in chip sales from the current Blackwell graphics processing unit (GPU) model and the upcoming Vera Rubin GPU launching between now and the end of 2027. Moreover, plans to reinstate chip sales to China—previously considered a vital revenue source—could further enhance Nvidia’s market position.
Despite the optimism, concerns regarding AI have become prevalent. Investors are wary about the slowdown of capital expenditures in AI, the realistic returns these investments may yield, potential margin pressures faced by Nvidia from emerging competitors, and the sector’s issues with circular financing. Additionally, for some, Nvidia’s immense market cap may pose a deterrent to purchasing. Doubts linger around its capacity to double in value, a scenario that would push its market cap beyond $8 trillion.
Nevertheless, many analysts maintain confidence in Nvidia’s ability to adhere to or exceed its guidance, bolstered by its proven track record. Trading at 21 times forward earnings, some experts argue that the risk-reward balance for Nvidia is currently more favorable than it has been in some time.
Another major contender on the Robinhood platform is Microsoft (NASDAQ: MSFT), ranked as the sixth most-owned stock. Despite the company’s historical strength and promising outlook in AI, it recently experienced its most challenging quarter since 2008. Analysts have issued 34 buy ratings out of 37 reviewed reports, with an average price target of approximately $582 per share indicating a potential upside of about 57%.
Concerns among investors focus on the broader software sector’s competitive landscape, especially regarding AI’s rapid evolution which threatens to outpace traditional software solutions. Microsoft’s diverse software offerings include cloud services through Azure, which has seen significant growth of 39% year-over-year in its first quarter of fiscal 2026, fueled by its utility in building and deploying AI solutions.
Conversely, Microsoft’s AI assistant Copilot faces challenges, having only reached about 3% penetration among its 450 million paid commercial Microsoft 365 subscribers. This figure raises questions regarding its potential for future growth, yet investors remain optimistic about the company’s long-term prospects in maintaining its foothold within cloud and enterprise software markets.
With Microsoft’s stock price declining by about 30% in recent months, many see this as an ideal entry point for investors looking to capitalize on future gains, banking on the tech giant’s continued relevance in the AI landscape.
Before making any investment decisions, potential investors in Nvidia should be aware that the Motley Fool’s Stock Advisor team recently identified ten stocks they believe are strong buys right now—and surprisingly, Nvidia did not make the cut. Historically, previous recommendations in this list have yielded substantial returns, exemplified by Netflix and a prior Nvidia selection.
The Motley Fool continues to endorse Microsoft and Nvidia, strengthening its position as a go-to resource for investors seeking insights and community engagement in the investing realm.
