Nvidia is once again leading a comeback among the Magnificent Seven, helping the Roundhill Magnificent Seven ETF rise nearly 3% on Thursday to $70.63, just shy of its all-time closing high of $70.94. The rebound marks a rotation back toward megacap tech leadership after investors earlier favored smaller semiconductor names.
Nvidia shares have gained about 7% over the past three months, while the iShares Semiconductor ETF has fallen 18%. The chipmaker's momentum follows a strong earnings report last week, in which it projected revenue growth of more than 70% for the fiscal year ending in January 2028. In its most recent quarter, revenue jumped to $96 billion, with third-quarter guidance of $108 billion and full-year revenue expected above $411 billion.
Nvidia also announced a $13 billion acquisition of Hugging Face, the open-source AI developer platform, a move analysts say extends its reach from chips into the software ecosystem. Joe Tigay of Equity Armor Investments said there is "still no end in sight to the AI infrastructure build-out." Forrester analyst Jeff Pollard noted the deal could give Nvidia greater control over the open-source software layer.
The company is increasingly being described as a "central bank" of the AI industry. It has become the fourth-largest investor in Intel with a $19.6 billion stake and has invested in CoreWeave, Nebius, IREN, OpenAI, Anthropic, Mistral AI, and others. Nvidia is also providing financial backing for OpenAI's Ohio data-center project and has assembled a consortium of banks and private credit providers to channel up to $500 billion into AI companies that can purchase Nvidia chips. However, this strategy has raised concerns about circular investments, where Nvidia funds customers that then buy its products.
CNBC's Jim Cramer argued investors should revisit the group: "We're witnessing the revenge of the Magnificent Seven and most people don't even seem to know it." He pointed to Nvidia's relatively modest forward price-to-earnings multiple of about 17 times expected earnings, though a separate analysis cited a forward P/E of 24. Technical analysis shows Nvidia remains above key moving averages, with resistance at $250 and a potential move toward $300.
