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Jay Woods Reveals His Top And Bottom Magnificent 7 Picks For 2026

MarketDash Editorial Team
2 days ago
Freedom Capital Markets Chief Market Strategist Jay Woods breaks down which Magnificent 7 stocks he's betting on and which ones he's avoiding as 2026 gets underway, citing technical setups, leadership focus, and spending concerns.

The Magnificent Seven stocks remain a near-obsession for investors and market watchers, and Freedom Capital Markets Chief Market Strategist Jay Woods has some strong opinions about which ones deserve your attention in 2026 and which ones might disappoint.

In an exclusive interview with MarketDash, Woods laid out his favorites and his concerns among the seven tech giants that have dominated market conversations for the past few years.

The Stocks Woods Is Backing

Back in September 2025, Woods advised sticking with what was working in big tech as the fourth quarter approached. One of those winners continues to shine in his view heading into the new year.

"I love Alphabet over the long term. That's one you put away," Woods said.

Alphabet Inc. (GOOG) had been tangled up in antitrust litigation that may have weighed on the stock's narrative, but Woods thinks investors should look past that drama and focus on what the company has accomplished recently.

"Look at what the stock has done."

Despite a strong fourth-quarter rally, Woods believes Alphabet could still be undervalued. He points to the potential of Waymo, the company's autonomous vehicle division, and what he sees as a significant undervaluation of YouTube.

"That growth continues at an alarming rate."

Woods also highlighted Tesla Inc. (TSLA) as a compelling story for 2026.

"I think Tesla's a story to watch in 2026."

According to Woods, Tesla CEO Elon Musk navigated the Washington scene and emerged from a public social media clash with President Donald Trump "unscathed." That resilience matters, especially combined with Musk's track record of hitting ambitious compensation targets that most people consider nearly impossible.

"He had a pay package that he hit all metrics when it came to EV sales."

Musk's new incentive structure focuses on robotics, market capitalization growth, and autonomous driving advancement. Woods thinks this alignment between Musk's personal financial interests and shareholder value could be powerful.

From a technical perspective, Tesla looks strong heading into 2026, Woods noted, pointing to a breakout pattern on the one-year chart.

"When you break out and now are going into a new year with momentum and you have a leader like Musk who's incentivized for the stock to do well, this is the fuel you want to see."

Woods sees Tesla combining technical setups, momentum, and a CEO laser-focused on hitting performance targets. He mentioned the $420 level as a "great number in Musk World" and $460 as potential support levels to watch on the downside. On the upside, Woods thinks Tesla could reach the mid-$600s, representing roughly a 33% gain from current levels.

"I think a $666 target because we like fun numbers with Elon Musk is achievable given the trajectory that this stock is on both technically and the fundamental possibilities behind him focusing on his job."

The Stocks Woods Is Avoiding

Not all Magnificent Seven members made Woods' nice list. He's particularly cautious on a few names heading into 2026.

"Meta is a stock that is now in a downtrend, a stock that has put so much money and emphasis into its spend and we're not seeing the benefits from it," Woods said.

While Woods appreciates what Meta Platforms Inc. (META) is accomplishing with Instagram, the technical picture concerns him. The stock has broken down and failed to reclaim its 200-day moving average, which is never a good sign.

"They need to show results on this next quarterly report."

Woods warned that Meta stock "has more downside risk" if the company can't demonstrate that its massive spending is paying off.

Microsoft Corp. (MSFT) is another stock giving Woods pause.

"Microsoft is another one. Topping formation developing there and it's got me a little concerned."

The key level to watch is $475, according to Woods. If Microsoft breaks below that threshold, he sees potential for a "significant leg lower."

Even NVIDIA Corp. (NVDA), the darling of the AI boom, might underperform relative to expectations in 2026, Woods suggested.

"Nvidia will have a good year. I just don't know if we're going to see that explosive growth to the upside from a stock performance point of view."

In his weekly newsletter, Woods recently predicted that semiconductor stocks like Nvidia could stall and take a breather in 2026. While it's not technically a Magnificent Seven member, Woods said he prefers Micron Technology Inc. (MU) to Nvidia for the year ahead.

Notably absent from Woods' favorites or least favorites list were Amazon.com Inc. (AMZN) and Apple Inc. (AAPL), suggesting these tech giants sit somewhere in the middle of his Magnificent Seven rankings.

Back to Stock Market News

Jay Woods Reveals His Top And Bottom Magnificent 7 Picks For 2026

MarketDash Editorial Team
2 days ago
Freedom Capital Markets Chief Market Strategist Jay Woods breaks down which Magnificent 7 stocks he's betting on and which ones he's avoiding as 2026 gets underway, citing technical setups, leadership focus, and spending concerns.

The Magnificent Seven stocks remain a near-obsession for investors and market watchers, and Freedom Capital Markets Chief Market Strategist Jay Woods has some strong opinions about which ones deserve your attention in 2026 and which ones might disappoint.

In an exclusive interview with MarketDash, Woods laid out his favorites and his concerns among the seven tech giants that have dominated market conversations for the past few years.

The Stocks Woods Is Backing

Back in September 2025, Woods advised sticking with what was working in big tech as the fourth quarter approached. One of those winners continues to shine in his view heading into the new year.

"I love Alphabet over the long term. That's one you put away," Woods said.

Alphabet Inc. (GOOG) had been tangled up in antitrust litigation that may have weighed on the stock's narrative, but Woods thinks investors should look past that drama and focus on what the company has accomplished recently.

"Look at what the stock has done."

Despite a strong fourth-quarter rally, Woods believes Alphabet could still be undervalued. He points to the potential of Waymo, the company's autonomous vehicle division, and what he sees as a significant undervaluation of YouTube.

"That growth continues at an alarming rate."

Woods also highlighted Tesla Inc. (TSLA) as a compelling story for 2026.

"I think Tesla's a story to watch in 2026."

According to Woods, Tesla CEO Elon Musk navigated the Washington scene and emerged from a public social media clash with President Donald Trump "unscathed." That resilience matters, especially combined with Musk's track record of hitting ambitious compensation targets that most people consider nearly impossible.

"He had a pay package that he hit all metrics when it came to EV sales."

Musk's new incentive structure focuses on robotics, market capitalization growth, and autonomous driving advancement. Woods thinks this alignment between Musk's personal financial interests and shareholder value could be powerful.

From a technical perspective, Tesla looks strong heading into 2026, Woods noted, pointing to a breakout pattern on the one-year chart.

"When you break out and now are going into a new year with momentum and you have a leader like Musk who's incentivized for the stock to do well, this is the fuel you want to see."

Woods sees Tesla combining technical setups, momentum, and a CEO laser-focused on hitting performance targets. He mentioned the $420 level as a "great number in Musk World" and $460 as potential support levels to watch on the downside. On the upside, Woods thinks Tesla could reach the mid-$600s, representing roughly a 33% gain from current levels.

"I think a $666 target because we like fun numbers with Elon Musk is achievable given the trajectory that this stock is on both technically and the fundamental possibilities behind him focusing on his job."

The Stocks Woods Is Avoiding

Not all Magnificent Seven members made Woods' nice list. He's particularly cautious on a few names heading into 2026.

"Meta is a stock that is now in a downtrend, a stock that has put so much money and emphasis into its spend and we're not seeing the benefits from it," Woods said.

While Woods appreciates what Meta Platforms Inc. (META) is accomplishing with Instagram, the technical picture concerns him. The stock has broken down and failed to reclaim its 200-day moving average, which is never a good sign.

"They need to show results on this next quarterly report."

Woods warned that Meta stock "has more downside risk" if the company can't demonstrate that its massive spending is paying off.

Microsoft Corp. (MSFT) is another stock giving Woods pause.

"Microsoft is another one. Topping formation developing there and it's got me a little concerned."

The key level to watch is $475, according to Woods. If Microsoft breaks below that threshold, he sees potential for a "significant leg lower."

Even NVIDIA Corp. (NVDA), the darling of the AI boom, might underperform relative to expectations in 2026, Woods suggested.

"Nvidia will have a good year. I just don't know if we're going to see that explosive growth to the upside from a stock performance point of view."

In his weekly newsletter, Woods recently predicted that semiconductor stocks like Nvidia could stall and take a breather in 2026. While it's not technically a Magnificent Seven member, Woods said he prefers Micron Technology Inc. (MU) to Nvidia for the year ahead.

Notably absent from Woods' favorites or least favorites list were Amazon.com Inc. (AMZN) and Apple Inc. (AAPL), suggesting these tech giants sit somewhere in the middle of his Magnificent Seven rankings.