Meta vs. Nvidia: How to play Mag 7 in the second half of 2025

00:00 Brian Sozzi

Meta just hit a record high on Monday. Nvidia’s 17% surge the past month has it knocking on the door of a $4 trillion market cap. My question is this, should you own both Meta and Nvidia in the face of their face ripping rallies? Chad, I’ll start with you here. If you had to pick one of these two names in the back half of the year, which one is it?

00:23 Chad Morganlander

I would perhaps go with Meta, uh, there seems as if they have a continual competitive advantage and it doesn’t look like they’re going to be in the crosshairs of the DOJ anytime soon. Uh, with that said, I’m sorry, I’m going to pivot, uh, you want to own other companies within the MAC 7 that perhaps their valuations have been drastically discounted.

00:49 Brian Sozzi

Brooke, uh, you mentioned earlier on this new super intelligence unit for Meta and it sounds great. It’s led by Alexander Wang, uh, who who led Scale AI sounds exciting on paper. What I can’t figure out is how is this going to impact Meta’s earnings this year? I don’t know if it will.

01:05 Brooke DiPalma

Well, what Mark Zuckerberg says that this is the necessity of the company. Of course, Mark Zuckerberg, the founder, the CEO of Meta, formerly known as Facebook. But what he really said here was that he believes that this is beginning of a new era for humanity and he’s fully committed to doing what it takes for Meta to lead the way. Of course, Meta looking to get ahead in this AI revolution that so many companies are looking to jump on board. And as you mentioned, he’s brought in top executives from AI, uh, Scale AI CEO Alexander Wang. He also brought in former GitHub CEO, uh, as well as Nat, that’s Nat Friedman there. He also brought in 11 new hires who are really focused around this AI trade and he’s really saying here, you know, investors really need to jump on and understand that this is not a want, a desire. This is a necessity for the company to compete in the near term and really long term here, Brian.

02:18 Brian Sozzi

All you know, who’s really driving the future of AI? That’s Jensen Huang, Nvidia. Make the case for Nvidia.

02:25 Alexandra Canal

Yeah, Nvidia, baby, the godfather of AI here. And we’ve seen mega cap stocks, especially Nvidia outperform. We were just talking about the share price move that we’ve seen up about 15%. We are nearing closer and closer to that $4 trillion market cap. And just a little context here, Brian. If Nvidia hits those levels, that would be valued 36% higher than the entire British stock market. That’s the FTSE 100 and just 18% below the total value of Japan’s Nikkei 225. So that just goes to show the sheer enthusiasm around this company, around this stock. Of course, earnings, that’s huge for this company. If we see any deterioration on that front when it comes to demand along with the hyperscalers, if they hint at any sort of demand headwinds, Blackwell, obviously a big focus for a lot of those investors. If we see that, we could have a pullback in the stock. But so far, earnings have been relatively steady, moving to the upside, and I think that is the big next test for Nvidia. But I’m bullish here and I think that Nvidia is going to continue to see a lot of those gains.