Nvidia and Meta Split in First Half, but Analysts Say the Latter Is the Best Bet for H2

The AI stock leaderboard reshuffled sharply in the first half of 2026. According to a July 5 report from The Motley Fool, memory-chip makers Micron and SanDisk posted stunning gains, while processor rivals AMD and Intel also delivered solid returns. In contrast, the AI superstars of 2023-2025 — Nvidia (NVDA) and Meta Platforms (META) — lagged. As of after-hours trading on July 7, Nvidia (NVDA) was at $428.19, up 2.44% (+$10.20) from the previous close of $417.99.^{[The Motley Fool]}

Nvidia: Valuation Discount vs. Growth Acceleration

Despite being one of the world’s most valuable companies, Nvidia’s stock isn’t getting the respect it deserves from Wall Street, according to The Motley Fool. The article argues that markets are hesitant to push the stock higher, but if its valuation simply reverted to its historical average, the stock would be 50% above current levels. Data shows Nvidia’s average forward P/E over the past two years was about 34x; today it’s just 21.7x, roughly in line with the S&P 500’s forward multiple.^{[The Motley Fool]}

Fundamentally, Nvidia’s growth story is far from over. The article cites Wall Street analysts forecasting next-quarter revenue growth of 96% year over year, accelerating from current levels. For context, slower-growing peer AMD trades at 73x forward earnings. The author argues Nvidia is undervalued both historically and relative to peers, and as the market realizes its growth story extends well beyond 2027, the stock should rally in the second half.^{[The Motley Fool]}

Meta: Strong Revenue but AI Spending Weighs

Unlike Nvidia, Meta Platforms (META) fell about 12% in the first half. The Motley Fool notes this isn’t due to weak business performance. Meta posted Q1 revenue growth of 33% year over year, the fastest among non-AI-chip big tech, driven by a booming ad market and the integration of AI tools into its social media ad platform.^{[The Motley Fool]}

However, the market is fixated on Meta’s massive AI infrastructure spending. The article notes Meta is considered one of the four AI hyperscalers, alongside Alphabet, Microsoft, and Amazon. But the other three all have cloud businesses that generate revenue and partially offset the cost of building AI data centers, while offering investors a clear return on investment. Meta has no cloud business; its hundreds of billions in AI data center investment is entirely for internal use, fueling investor concern about returns.^{[The Motley Fool]}

Tesla: Deliveries Beat but Valuation Looms

Tesla (TSLA) faces a similar tension between performance and valuation. According to a July 6 report from The Motley Fool, while the S&P 500 is up 9% year to date in 2026, Tesla’s stock has fallen 12% (as of the July 2 close). After two consecutive years of declining EV sales, the company surprised the market on July 2 with Q2 delivery data: 480,126 vehicles, up 25% year over year and well above Wall Street’s average estimate of ~406,000, marking the second straight quarter of delivery growth.^{[The Motley Fool]}

The article suggests that a surge in oil prices since February, driven by Middle East geopolitical tensions, may have boosted Q2 EV demand. But with a US-Iran ceasefire deal progressing, oil prices have begun to retreat, casting doubt on the sustainability of that tailwind. Meanwhile, competition from low-cost EV makers like BYD remains Tesla’s biggest challenge. Based on trailing 12-month EPS of $1.09, Tesla trades at a P/E of 359x — more than 10 times the Nasdaq 100’s P/E of 35.2x. Tesla will report its full Q2 earnings on July 22.^{[The Motley Fool]}

Goldman Sachs: Undervalued Stocks With Upside

Goldman Sachs flagged several undervalued stocks with room to run in a July 5 report. According to CNBC, Goldman advised investors to buy the dip, calling out O'Reilly Automotive, NetEase, Tradeweb Markets, and Liftoff Mobile. Analyst Kate McShane said O'Reilly Automotive has been under pressure from multiple factors but remains undervalued, and Goldman’s data checks show its Q2 same-store sales trends are stronger than peers.^[CNBC]

Honeywell Split: First Week Diverges

Honeywell’s split into two independent companies also drew attention this week. According to a July 6 report from CNBC, the two stocks have diverged in their first week of trading. The CNBC Investing Club’s Homestretch report noted that as investors pile back into the AI buildout theme, money is flowing out of healthcare and consumer retail, while semiconductors are rebounding.^[CNBC]

FDA Approval Pace Slows, but New Drug Approvals Rise

In biopharma, the FDA’s first-half approval pace was affected by internal turmoil. According to a July 6 report from BioSpace, the agency issued about 79 approval decisions in H1, slightly below the 85 in the same period last year, due to ongoing leadership instability and staff departures. However, new drug approvals rose to 26 from 19 a year earlier. Steven Grossman, president of policy consultancy HPS Group, said FDA approvals are a “lagging indicator” and that H1 data largely reflects the chaos inside the agency in the second half of last year. He specifically cited the “hostile management” of former CBER director Vinay Prasad as a drag on efficiency. The FDA is now planning to hire about 2,200 employees, with 600 already on board.^[BioSpace]

BTG Consulting Profit Beats, but Shares Fall

BTG Consulting shares fell 6.8% to 73.01 in pre-market trading on July 7 after reporting H2 2026 results. According to Investing.com UK, full-year revenue rose 10% to £169.8 million, and adjusted pre-tax profit of £25 million beat expectations. But EBITDA margin slipped to 19.8% from 20.6%, and operating cash flow conversion fell to 83% from 97%, raising investor concerns about margin pressure and cash flow quality. The company maintained its medium-term revenue target of £200 million.^{[Investing.com UK]}

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