To The Moon

As of early March 2026, Mag 7 have faced a collective pullback, fueled by escalating geopolitical tensions in the Middle East and growing skepticism over the AI capex. However, this volatility has created a historic technical setup: $NVIDIA(NVDA)$ and $Microsoft(MSFT)$ have once again plunged into their most "undervalued" territory in five years.

For veteran investors, this isn't just a correction, it’s the market "handing out checks" again. Let’s look at the valuation landscape through the lens of the March 2nd closing data:

1. $NVIDIA(NVDA)$ is trading at roughly 21.5x Forward P/E, another cheapest level over the past five years.

Nvidia’s FY2026 Q4 results were nothing short of legendary: $68.1 billion in revenue (up 73% YoY) and a staggering $43 billion in net income. Perhaps the most lethal metric is its 75.2% Gross Margin. In an era of soaring memory costs and supply chain friction, Nvidia isn't just selling silicon; it’s effectively printing money.

If the performance is so strong, why the dip? The consensus concerns center on the threat of internal silicon projects from hyperscalers (AMZN, MSFT) and capex.

2. $Microsoft(MSFT)$ is currently trading roughly 31% below its peak of $539.83 seen four months ago.

Its P/E has retreated to the 23x. With quarterly CapEx hitting $37.5 billion, investors fear that depreciation will eat alive the bottom line before AI apps can scale.

Azure continues to sprint with 39% growth. The secret weapon? The full-scale rollout of the Maia 200 chip in H2 2026. This custom inference silicon offers a 40% better price-performance ratio, serving as a critical defensive moat to lock in Azure’s 67% gross margins.

3. $Amazon.com(AMZN)$ is facing a similar dilemma: management raised the 2026 investment budget to a staggering $200 billion (up 52% YoY).

The market is repricing Amazon from a "nimble internet platform" to a "heavy-asset infrastructure utility." Infrastructure companies trade on recovery cycles, not just revenue spikes.

While retail is in a "defense" mode, the Ad business (+22%) is providing high-margin oxygen to the balance sheet. Amazon is aggressively testing its in-house Trainium 3 and Inferentia chips. This isn't just about reducing dependence on Nvidia; it’s about slashing AI compute costs by up to 40-50%.

Buying Amazon now is a bet that this "spending cycle" will eventually sunset. Build positions in stages; wait for the moment when Free Cash Flow (FCF) begins its parabolic ascent.

4. $Netflix(NFLX)$ surged 20% over the last four sessions, not just on earnings, but on "restraint."

Facing a frenzied $111B bid from Paramount for WBD, Netflix calmly walked away at its $27.75 ceiling. This avoided inheriting WBD’s $30 billion debt—a move Wall Street hailed as a "stroke of genius." Instead of overpaying for legacy assets, Netflix pivoted to share buybacks. With a P/E of 33x (well below the 3Y average of 42.5x), it is becoming a mature cash-cow.

Netflix is no longer the "growth at all costs" teenager; it’s a disciplined media titan. With a consensus price target of $113 (roughly 20% upside), it offers one of the cleanest risk-reward profiles in the sector.

Which giant worth buy the dip now?

Are you bullish on Nvidia’s GTC conference?

Is Microsoft a buy at $400 now?

Or should we shift focus from mag 7 to other assets?

Leave your comments to win tiger coins~