2 of the Most Owned Stocks on Robinhood Also Have at Least 50% Upside, According to Wall Street

With tens of millions of funded accounts, Robinhood is one of the most popular online brokerages for retail investors. Each month, the company posts the top 10 most-owned stocks on the platform. This list is updated monthly and usually includes large tech and artificial intelligence stocks found in the "Magnificent Seven."

Due to the sell-off in large tech and AI stocks this year, Wall Street analysts now see a big buying opportunity for two of these very popular Robinhood stocks:

• The No. 1 most-owned stock on Robinhood is Nvidia (NASDAQ: NVDA), which is also the largest stock in the world by market cap. Of the 43 Wall Street analysts who have issued research reports over the past three months, 41 have a buy rating on Nvidia. One has a hold rating, and one has a sell rating, according to TipRanks. The average price target of roughly $274 per share suggests 54% upside from the current level (as of April 7).
• The No. 6 most-owned stock on Robinhood is Microsoft (NASDAQ: MSFT). Of the 37 Wall Street analysts who have issued research reports on the company over the past three months, 34 have a buy rating, according to TipRanks. The average price target of roughly $582 per share suggests 57% upside from current levels.

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Nvidia: Surprised to see the sell-off

Wall Street analysts have been challenged to find reasons why investors won't buy Nvidia stock. Earlier this year, the company reported blowout earnings and significantly raised its guidance for the current quarter.

Meanwhile, CEO Jensen Huang has guided for $1 trillion in chip sales from its current Blackwell graphics processing unit (GPU) model and platform, and the soon-to-be-released Vera Rubin GPU and platform between March of this year and the end of 2027. Huang also said the company is preparing to relaunch chip sales to China, a market it once considered a prominent source of revenue.

AI concerns have been well documented at this point. Investors are worried about the intense AI capital expenditure cycle slowing, what returns these hyperscalers can realistically generate from this kind of spending, margin erosion at Nvidia as chip competitors emerge, and circular financing within the sector. I think it may also be challenging for some investors to buy Nvidia given its sheer size. A double in the stock market means a market cap well over $8 trillion.

Still, it's hard to believe that Nvidia management won't meet or exceed the guidance it has provided, given that it has a strong track record of doing so. While I certainly believe the concerns about AI are real, trading at 21 times forward earnings, Nvidia's risk-reward proposition is as favorable as it's been in a while.

Microsoft: Not enough AI traction

As one of the largest tech companies in the world, Microsoft is expected to benefit immensely from AI, yet the stock appears to be fading from AI and software concerns. The stock just finished its worst quarter since 2008.

Microsoft offers many different software products and services. Investors are concerned about the software sector because they believe AI will likely be able to deploy competition more quickly than ever before, which some believe will cut into the moats and strong growth of many SaaS companies. While Microsoft offers many AI services, some have grown tremendously, while others haven't.

For instance, Microsoft has seen tremendous growth in its Azure cloud division. Azure cloud offers customers models, tools, and services that developers can use to build and deploy AI solutions. This has been a success, with Azure and other cloud services revenue growing 39% year over year in the company's first quarter of fiscal 2026.

However, Microsoft's AI assistant Copilot has proven less effective, with the paid version penetrating only about 3% of Microsoft's 450 million paid commercial Microsoft 365 subscribers. Investors would like that number to be much higher, given the cross-selling potential. However, it could also be a source of future growth.

Ultimately, it's hard to believe that Microsoft won't benefit from the continued progress of the AI revolution in one way or another, or at the very least maintain its dominance in the enterprise software and cloud space. With the stock down about 30% over the past six months, it's hard not to see this as a good buying opportunity.

Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool has a disclosure policy.