Magnificent Seven Dip Buys: Nvidia Leads on Valuation, Alphabet on RSI
As the Magnificent Seven selloff deepens into early November 2026, investors are hunting for entry points among the mega-cap tech giants. Nvidia and Alphabet stand out on two different screens: Nvidia offers the most attractive forward valuation relative to its growth, while Alphabet’s relative strength index has fallen into oversold territory, a technical signal that often precedes a bounce. With the Nasdaq down more than 5% from its October highs, the question is which dip is worth buying.
Nvidia’s 32x Forward P/E Is Cheapest Since 2024
Nvidia shares have fallen roughly 18% from their record close in September 2026, pushing the forward price-to-earnings ratio down to about 32 times. That is the lowest level since early 2024, according to FactSet data. The decline comes despite robust demand for its Blackwell Ultra chips and a backlog that management has said extends into 2027. At 32 times forward earnings, Nvidia trades at a discount to the S&P 500’s top 10 technology names on average, which sit near 38 times.
Analysts at Morgan Stanley reiterated an overweight rating on Nvidia on 3 November 2026, arguing that the selloff is macro-driven rather than company-specific. The firm noted that Nvidia’s data center revenue is still growing more than 50% year-over-year and that supply constraints, not demand, remain the primary bottleneck. If the broader market stabilizes, Nvidia’s valuation gap could close quickly.
Alphabet’s RSI at 38 Signals Oversold Conditions
Alphabet has not escaped the tech selloff either. The stock is down about 12% from its October peak, and its 14-day relative strength index has fallen to 38, according to data from TradingView. An RSI below 40 is often viewed as a buying opportunity for long-term investors, especially for a company with Alphabet’s balance sheet and cash flow. The last time Alphabet’s RSI dipped below 40, in April 2026, the stock rallied 15% over the following two months.
Fundamentally, Alphabet’s cloud division continues to gain market share, and its AI initiatives, including Gemini, are monetizing faster than expected. However, regulatory headwinds in the U.S. and Europe remain a risk. The Department of Justice’s antitrust case against Google’s ad tech business is still ongoing, with a remedy hearing scheduled for early 2027. Investors should weigh these legal overhangs against the attractive technical setup.
Why the Dip Is Different This Time
Unlike the 2022 selloff, which was driven by rising interest rates and a broad tech recession, the current pullback is largely sentiment-driven. The Federal Reserve has signaled a pause in rate hikes, and inflation has moderated to 2.8% as of the October 2026 reading. Corporate earnings for the Magnificent Seven have largely beaten expectations, with Nvidia and Alphabet both topping consensus estimates in their most recent quarters.
What is different is the concentration of the selloff. According to Bespoke Investment Group, the Magnificent Seven have accounted for 85% of the Nasdaq’s decline since mid-October. That suggests that once the selling pressure abates, these names could lead the rebound. For investors looking to add exposure, Nvidia offers the better valuation case, while Alphabet provides a technical entry point.
How to Play the Rebound
For Nvidia, a close above its 50-day moving average of $145 would confirm a short-term bottom. The stock closed at $138 on 4 November 2026. For Alphabet, a break above $165 would signal that the oversold bounce is underway; it closed at $158 on the same day. Both levels are worth watching in the coming sessions.
Investors should also keep an eye on the upcoming earnings from other Magnificent Seven members. Microsoft reports on 12 November 2026, and Amazon on 14 November 2026. Strong results could lift the entire group and validate the dip-buying thesis. Conversely, a miss could extend the selloff and push Nvidia’s forward P/E below 30, making it even more attractive.
What to Watch: Nvidia’s $145 Break and Alphabet’s $165 Resistance
The next few weeks will be critical for the Magnificent Seven. Nvidia’s ability to hold above $130 and reclaim $145 will determine whether the valuation argument holds. Alphabet’s RSI could stay below 40 for an extended period if the broader market continues to slide.
The key date is 12 November 2026, when Microsoft reports earnings. A strong print could be the catalyst that lifts the entire group. If Nvidia closes above $145 and Alphabet breaks $165, the dip-buying thesis is confirmed. If both fail, the selloff may have further to run.
Sources: rss_autopost