The “Magnificent Seven” stocks are core positions in many portfolios. You don’t become megacap monsters without the huge earnings power and investor interest that Magnificent Seven stocks bring.

In the latest Hazeltree Crowding Report, which tracks which stocks institutional investors are holding, six of the seven Mag 7s — excluding Tesla — were among the top 10 most popular long positions in May.

But of those six, three appear to be the most attractive right now — Nvidia (NVDA +3.08%), Microsoft (MSFT +0.19%), and Meta (META +1.86%).

1. Nvidia

All three of these stocks have one thing in common — they are trading at a significant discount.

Nvidia stock is trading at just 23 times forward earnings, down from 40 this time a year ago. Its long-term valuation is even more attractive as it has a five-year price/earnings-to-growth (PEG) ratio of just 0.63. A PEG ratio below 1 means that the stock is undervalued relative to its long-term earnings expectations — and the lower the PEG ratio, the cheaper it is.

Today’s Change

(3.08%) $6.30

Current Price

$210.95

Key Data Points

Market Cap

$5.1T

Day’s Range

$206.50 – $211.38

52wk Range

$142.03 – $236.54

Volume

5.1M

Avg Vol

164.2M

Gross Margin

74.15%

Dividend Yield

0.13%

This alone signals that Nvidia is in the buy zone, given its huge earnings power. In the latest quarter, revenue jumped 20% sequentially and 85% year over year while earnings surged 214% year over year. For the current quarter, Nvidia anticipates revenue of $91 billion, an 11% increase over last quarter, and a gross margin of 74.9%, down slightly from 75% last quarter.

Looking out, this fiscal year analysts anticipate 88% earnings growth for Nvidia to $8.96 per share. For the next fiscal year, its fiscal 2028, Wall Street expects 42% earnings growth for Nvidia.

Analysts have a median price target of $300 per share for Nvidia, which suggests a 44% return over the next 12 months.

2. Microsoft

Microsoft stock has not had a great year, down 21% year to date. Microsoft’s share price decline is due to various factors, including its formerly high valuation, concerns about overspending on artificial intelligence (AI), worries related to its partner OpenAI’s profitability, slightly slowing AI cloud growth, and other issues.

But most of these are short-term concerns. In the latest quarter, Microsoft’s results alleviated some of those issues as it had blowout earnings that topped estimates. More importantly, its cloud revenue surged 29% year over year while its Azure AI cloud sales rose 40%. Also, it restructured its deal with OpenAI so it is no longer an exclusive provider and no longer pays revenue share to OpenAI.

Today’s Change

(0.19%) $0.71

Current Price

$379.62

Key Data Points

Market Cap

$2.8T

Day’s Range

$373.31 – $381.37

52wk Range

$356.28 – $555.45

Volume

1.6M

Avg Vol

35.9M

Gross Margin

68.31%

Dividend Yield

0.94%

In addition, Microsoft anticipates double-digit revenue growth this fiscal year, including 5% sequential sales growth in the current quarter. Furthermore, Azure sales are anticipated to rise 40% year over year in the current quarter and accelerate in the second half of calendar year 2026.

The kicker is Microsoft’s dirt cheap valuation. It is trading at around 19 times forward earnings, which is near the lowest it has been in the last 10 years.

This makes Microsoft stock a no-brainer buy right now.

3. Meta Platforms

Meta has had its share of issues as of late, with shares sinking due to a recent report in the Financial Times that it was raising money for AI spending — which Meta officials called “pure speculation.”

Meta stock also tanked some 5% recently when it was learned that one of its top executives in charge of AI implementation was leaving the company.

Overall, Meta stock is down 13% year to date, but like Nvidia and Microsoft, it is extremely cheap. Meta stock is trading at just 18 times forward earnings and has a PEG ratio of 0.82.

Today’s Change

(1.86%) $10.58

Current Price

$578.16

Key Data Points

Market Cap

$1.5T

Day’s Range

$563.13 – $580.21

52wk Range

$520.26 – $796.25

Volume

910.5K

Avg Vol

17.5M

Gross Margin

81.94%

Dividend Yield

0.36%

This is an incredibly cheap valuation for one of the largest, most successful companies in the world. In the latest earnings report, it grew revenue 33% and earnings 62%. Furthermore, it expects 7% sequential revenue growth in the current quarter.

Expenses are worth watching, as Meta guides for a 41% increase in spending to about $165.5 billion at the midpoint of its range for this fiscal year. It also raised its capital expenditures range to $125 billion to $145 billion, up from $115 billion to $135 billion, to fund its AI data centers.

But Meta’s low valuation just makes it too cheap to pass up. Analysts have a median price target of $808 per share, which suggests 43% upside (at the time of this writing). Like the others, its a screaming buy.

OpenAI and Google DeepMind both established applied AI labs in the city-state over the past year, while Anthropic began advertising local positions in finance, product support, and economic research. Chinese firms like Tencent have also deepened their investment in the country.

“All the AI companies I work with, whether they’re from China, Korea or Japan, all use Singapore as a hub,” Gunja Gargeshwari, the chief revenue officer of Israel-headquartered web scraping firm Bright Data, told Fortune on the sidelines of the SuperAI summit in Singapore. “It’s easiest to operate in the region if I have people in Singapore—it’s where conversations are happening, and where the innovation hubs for different providers are being set up.” Bright Data, for instance, has chosen to position Singapore as its APAC headquarters, even though 60% of its Asian customer base hails from China and India.

“We have the chance to stand out here,” said Nathan Xu, the CEO of San Francisco-based AI notetaker company Plaud. “Unlike many companies that originate entirely from the U.S., if Plaud can position ourselves aggressively in Singapore, then we’re a cool company to prospective users across the globe.”

Plaud hired its first Singapore-based employee in 2024. On June 10, the company said it would spend 10 million Singapore dollars ($7.8 million) to expand its local operations. It also plans to grow its headcount from 100 to 150 by the end of the year. 

Singapore’s appeal to the AI industry is as much due to geopolitics as economics. The country markets itself as an economic safe haven, with a long track record of regulatory clarity and strong governance. 

“Some say we are boring, and we will never have the same offerings as New York and Paris,” Singapore Prime Minister Lawrence Wong said during a policy conference last July. “But at the same time, we are stable, we are predictable. We are reliable and we are trusted, and these are intangible assets that others would die to have.”

Founders like Xu also point to the country’s rigorous education system as an incubator for tech talent. “The biggest pain for me and the company is hiring the best engineers, and what’s interesting about Singapore is that it’s home to some of the best universities in the world,” Xu explains. (In this year’s QS World University Rankings, the National University of Singapore ranked #8, while the country’s Nanyang Technological University came in at #12.) “It’s a place which curates generations of talents around software engineering, computer science, AI, data science and operations.”

AI firms go global

The AI build-out in Singapore reflects a broader change across the industry. Global AI firms are shifting away from training massive models to instead figuring out how to monetize their work in the real world.

“The defining feature of the AI cycle through 2025 was capital expenditure… while this has expanded capacity and driven technology leadership, it has also invited skepticism,” wrote BNY’s wealth analysts in a March report. “Attention has now turned decisively from scale to return on investment.”

For firms of Chinese origin, like Manus AI, Tencent, and Alibaba, Singapore often serves as a first and crucial step in going global. To build out their presence in the country, Chinese tech giants are dangling hefty annual pay packages: Singapore-based roles for holders of PhDs in AI can range between $150,000 to $273,000.

“For some of my Chinese customers, the researchers can’t leave the country without telling the government—I kid you not,” said Gargeshwari. “So opening an office in Singapore and having local employees is a necessity for them to do business.”

For U.S. AI firms, overseas markets like those in Asia Pacific represent a massive untapped customer base. 

OpenAI opened a regional office in Singapore in 2024. Last month, the firm committed 300 million Singapore dollars ($234 million) to growing the country’s AI ecosystem. It also announced the opening of an applied AI lab—the first outside of the U.S.—which is set to make Singapore one of its hubs for forward deployed engineers: specialized software engineers who embed directly within customer organizations to customize and deploy tech solutions.

Notion, the AI-powered productivity platform, opened a Singapore office in mid-2025. “Our number one priority is to meet and interface with current and potential customers,” said Randy Hunt, the company’s head of design. “I could do a demo for you over video, and while that may be effective, if I can do it sitting next to you, it resonates better.”

Anthropic is betting on enterprise AI instead of the consumer market, which makes Singapore, where many MNCs house their APAC headquarters, a natural choice.

Cracks in the system

Yet, foreign governments are starting to challenge Singapore’s neutrality.

Manus AI and its parent company, Butterfly Effect, relocated its global headquarters to Singapore in mid-2025 to both avoid Western regulatory scrutiny and better access global capital. In December, it sold itself to Meta for $2 billion. Beijing quickly moved to block the deal, and in April ordered the acquisition to be unwound. 

In the end, Manus’s legal status as a Singapore company didn’t matter: its continued footprint in China was enough for Beijing to decide it had jurisdiction. 

“Regulators looked straight through the Singapore holding structure to the technology’s Chinese origin,” Sebastian Wiendieck, the head of legal practice in China at law firm ROEDL, told CNA. “This marks a new normal: any China-founded AI startup, regardless of its offshore domicile, will face intense national security scrutiny if it tries to sell to a U.S. buyer.”

The U.S., too, could hurt Singapore’s AI ambitions. Last week, the U.S. government barred non-U.S. individuals from using Anthropic’s powerful Mythos model. Singapore could end up losing access to powerful frontier models from U.S. companies like Anthropic and OpenAI.  

Still, AI firms remain positive about expanding into Singapore. The country released its national AI R&D plan in January, alongside a 1 billion Singapore dollar injection to fund the buildout of AI-related infrastructure and capabilities. The country also set out plans to build an AI industrial park called Kampong AI, set to open in 2028 with workspaces and housing facilities to woo AI start-ups.

“We feel like we are welcomed here,” Xu said. “We didn’t know we’d be able to set up such a big and meaningful presence here; a year ago, we had zero people here, but now we have close to a hundred.”