Prediction: This Stock Will Outperform the "Magnificent Seven" in the Second Half of 2026

Artificial intelligence stocks have seen a decline this second half of 2026, causing Wall Street to focus on stocks considered AI underperformers. Nintendo, a video game company, has experienced a 30% stock price rebound over the past 30 days following fears of supply chain disruption for memory chips. In 2009, the same Total Conviction signal that is flashing now for Nintendo was also seen for Nvidia, a chipmaker once regarded as a "Double Down" opportunity.

The Nintendo Switch 2, released last year, has sold nearly 24 million units in its first 12 months, indicating strong consumer demand. Nintendo has responded to rising memory chip prices by increasing the console's price by $50, but this has not significantly impacted the company's financial performance. Nintendo generated about $900 million in operating income last quarter and has a market cap of nearly $64 billion.

If memory chip supply issues improve and Nintendo's earnings grow, its stock may become a more attractive investment compared to the Magnificent Seven stocks, which have seen a general rise due to AI and cloud computing demand.