The 4 Best "Magnificent Seven" Stocks to Buy Now
Written by Keithen Drury for The Motley Fool -> Nvidia keeps cashing in on the AI build-out. Meta Platforms looks dirt cheap for the growth it's generating. Microsoft and Amazon are solid picks that have a strong future ahead. The "Magnificent Seven" is made up of some of the
Meta Platforms looks dirt cheap for the growth it's generating.
Microsoft and Amazon are solid picks that have a strong future ahead.
The "Magnificent Seven" is made up of some of the most dominant tech companies in the world. Every member is a top 10 company by market cap worldwide. They are:
All seven have their merits as investments, but which one is the top buy now? I've narrowed my list down to four that represent the best values in the group.
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Nvidia takes the cake as the top stock to buy in this group. The reasoning is fairly simple: It's the most attractively priced relative to its growth rates and long-term potential. There is massive, unmet demand for artificial intelligence (AI) computing power, and Nvidia's GPUs are the primary computing units being used to meet it. The world is still relatively early in the AI infrastructure build-out, which many project will accelerate through at least 2030. That bodes well for Nvidia's future, yet the stock doesn't command a massive premium.
Nvidia is the second-cheapest stock of the group based on expected forward earnings. (Note: Because Tesla is valued at close to 200 times forward earnings, it could not be included in this chart.)
Despite that, Nvidia's revenue growth rate is far greater than its fellow Magnificent Seven members.
