My 2 Favorite Discount "Magnificent Seven" Stocks to Buy Now
2026-07-22 16:10
•Adria Cimino •The Motley Fool
••••• ••• Axe Capital view
Discounted AI Leaders: Nvidia and Microsoft Look Attractive
Nvidia and Microsoft trade cheaper after recent cooling, opening buying opportunities on sustained AI-driven growth.
Nvidia and Microsoft stand out among the so-called Magnificent Seven tech giants as smart buys right now. Nvidia dominates the AI chip market, boasting 65% revenue growth and strong margins above 70%. Its commitment to rolling out new tech yearly means it isn’t resting on past successes. Microsoft, meanwhile, is weaving AI deeper into its cloud and software products, with $37 billion in annual recurring revenue from AI-driven cloud solutions alone. Both stocks have pulled back from recent highs, offering reasonable valuations—Nvidia on growth highly linked to AI demand, and Microsoft trading at a 20x forward multiple, which is relatively cheap for this group. For South African investors, these dual forces suggest keeping an eye on USD/ZAR because any broad US tech recovery could support the rand. But if AI adoption globally slows unexpectedly, or if regulation hits hard, these companies' premiums could evaporate quickly. this is just my opinion and not financial advice
Buy Nvidia and Microsoft for exposure to AI growth at better prices, while watching USD/ZAR for currency risk. Trim if global tech sentiment deteriorates sharply.
- NVDA
- MSFT
- USD/ZAR
- Slower-than-expected AI adoption internationally
- Increased regulatory scrutiny around tech companies
6/10
The article highlights Nvidia and Microsoft as attractive discount opportunities among the "Magnificent Seven" tech stocks. Nvidia dominates the AI chip market with strong revenue growth and high profitability, while Microsoft benefits from AI integration into its software suite and cloud business. Both stocks are trading at lower valuations after recent momentum loss, presenting buying opportunities as the long-term AI story remains intact.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Adria Cimino
Categories: Equities, Earnings, Technology, AI, Semiconductors
Tickers: NVDA, MSFT, META
Sentiment: Positive - Dominates AI chip market with 65% revenue growth, maintains 70%+ gross margins, commits to annual innovation cycles, and benefits from strong industry-wide AI demand. Trading at 20x forward earnings (second-cheapest among Magnificent Seven), successfully integrated AI into software suite via Copilot, cloud AI business reached $37 billion annual recurring revenue, and deeply integrated platforms unlikely to be disrupted by AI.
Keywords: Magnificent Seven, artificial intelligence, AI chips, cloud computing, tech stocks, valuation, GPU, software integration
Insights:
- NVDA: Positive: Dominates AI chip market with 65% revenue growth, maintains 70%+ gross margins, commits to annual innovation cycles, and benefits from strong industry-wide AI demand.
- MSFT: Positive: Trading at 20x forward earnings (second-cheapest among Magnificent Seven), successfully integrated AI into software suite via Copilot, cloud AI business reached $37 billion annual recurring revenue, and deeply integrated platforms unlikely to be disrupted by AI.
- META: Neutral: Mentioned as the cheapest Magnificent Seven stock by valuation metric, but no detailed analysis provided in the article.