Analysts see buying opportunities in Nvidia and Microsoft as Robinhood’s most-owned stocks retreat

With tens of millions of funded accounts, Robinhood is one of the most popular online brokerages for retail investors. Each month, the company posts the top 10 most-owned stocks on the platform, a list that is updated monthly and often includes large technology and artificial intelligence names from the “Magnificent Seven.”

After a sell-off in large tech and AI stocks this year, Wall Street analysts are pointing to buying opportunities in two of Robinhood’s most widely held stocks.

Nvidia (NVDA): Analysts see upside after the sell-off

Robinhood’s No. 1 most-owned stock is Nvidia, up about 2.59% in the period cited. Nvidia is also the largest stock in the world by market cap. According to TipRanks, 41 of 43 Wall Street analysts who issued research reports over the past three months rate Nvidia a buy, with one hold rating and one sell rating.

The average price target is roughly $274 per share, implying about 54% upside from the level as of April 7.

What analysts point to

Analysts have been challenged to identify reasons investors would not buy Nvidia. Earlier this year, the company reported “blowout” earnings and raised guidance for the current quarter.

CEO Jensen Huang has also guided for $1 trillion in chip sales from its current Blackwell GPU model and platform, and from the soon-to-be-released Vera Rubin GPU and platform between March of this year and the end of 2027. Huang also said Nvidia is preparing to relaunch chip sales to China, a market it previously viewed as a prominent source of revenue.

Key investor concerns

AI-related concerns have been widely discussed. Investors worry about an intense AI capital expenditure cycle that could slow, what returns hyperscalers can realistically generate from that spending, potential margin pressure at Nvidia as chip competitors emerge, and circular financing within the sector. Some investors may also find it difficult to buy Nvidia given its size, with a “double” in the stock market implying a market cap well above $8 trillion.

Microsoft (MSFT): AI expectations meet mixed results

Robinhood’s No. 6 most-owned stock is Microsoft, up about 0.60% in the period cited. TipRanks data shows that among 37 Wall Street analysts who issued research reports over the past three months, 34 rate Microsoft a buy.

The average price target is roughly $582 per share, suggesting about 57% upside from current levels.

Why some investors are cautious

Microsoft is expected to benefit from AI, but the stock appears to be losing momentum amid concerns about AI traction and software growth. The stock recently posted its worst quarter since 2008.

Investors are also focused on the software sector, arguing that AI could deploy competition faster than ever and potentially erode the moats and growth of some SaaS companies. While Microsoft offers multiple AI services, some have grown rapidly while others have not.

Where Microsoft is performing

Azure cloud has been a bright spot. Azure provides customers with models, tools, and services to build and deploy AI solutions, and the company reported that Azure and other cloud services revenue grew 39% year over year in its first quarter of fiscal 2026.

However, Microsoft’s AI assistant Copilot has been less effective commercially. The paid version has penetrated only about 3% of Microsoft’s 450 million paid commercial Microsoft 365 subscribers. Investors would like that figure to be higher due to cross-selling potential, though it could also represent a source of future growth.

Bottom line

Despite the concerns, it is difficult to argue that Microsoft will not benefit from continued progress in the AI revolution, or at least maintain its position in enterprise software and cloud. With the stock down about 30% over the past six months, the sell-off is being viewed by some as a potential buying opportunity.