Nvidia among 6 megacaps that Morningstar says are undervalued. See full list

Morningstar identifies six US megacap technology stocks — Nvidia, Microsoft, Amazon, Broadcom, Meta Platforms, and AMD — as undervalued despite their underperformance in the first half of 2026. The research firm sees strong AI-driven growth potential, with Nvidia assigned a target price of around 280 dollars and Broadcom's AI chip revenue projected to triple in fiscal 2026 and double again in fiscal 2027. The communication services sector trades at a 20 percent discount, while the consumer cyclical sector is at a 9 percent discount largely driven by Amazon.