The "Magnificent Seven's" Capex Spending Spree Has Given Birth to 2 Millionaire-Maker Stocks Hiding in Plain Sight. Here's the Best of the Bunch
Written by Harsh Chauhan for The Motley Fool -> Nvidia and Sandisk are in the middle of the AI infrastructure boom, driven by the terrific demand for their chips deployed in AI data centers. Both companies are on track to deliver phenomenal earnings growth, but investors lookin
Nvidia and Sandisk are in the middle of the AI infrastructure boom, driven by the terrific demand for their chips deployed in AI data centers.
Both companies are on track to deliver phenomenal earnings growth, but investors looking to buy one of these two stocks have an easy decision to make.
The "Magnificent Seven" are a group of seven mega-cap technology companies with enormous valuations that have a sizable influence on the stock market.
Alphabet , Amazon , Apple , Meta Platforms , Microsoft , Nvidia (NASDAQ: NVDA) , and Tesla make up the Magnificent Seven , and their earnings growth is expected to be significantly higher than the broader market over the next couple of years. It is worth noting that this group has been spending heavily to build artificial intelligence (AI) infrastructure.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Alphabet, Amazon, Microsoft, and Meta are poised to spend a collective $725 billion on capital expenses this year, up by 77% from last year's record outlay. Meanwhile, Tesla's capital spending is expected to jump to more than $25 billion this year from $8.5 billion last year, driven by investments in humanoid robots and robotaxis. Though Apple has been conservative with capital spending, the iPhone maker has still spent a notable $4.3 billion on capex over the past couple of quarters.
So, the total capex of the Magnificent Seven could exceed $750 billion in 2026. Investors looking to build a million-dollar portfolio can capitalize on this spending spree by buying top tech stocks poised to grow earnings faster than the broader market. Nvidia and Sandisk (NASDAQ: SNDK) are two stocks with massive upside potential that are benefiting from this enormous AI infrastructure spending.
Let's see why these stocks are ideal fits for a potential million-dollar portfolio and check which one is the pick of the lot.
