Ranking the Best "Magnificent Seven" Stocks to Buy Right Now
2026-07-25 19:30
•Micah Zimmerman •The Motley Fool
•••••• •••••••••• Axe Capital view
The ‘Magnificent Seven’: Time to Pick and Choose
Tech giants have pulled back, but not all deserve your rand just yet.
The ‘Magnificent Seven’ tech stocks—Alphabet, Nvidia, Microsoft, Amazon, Meta, Apple, and Tesla—have slipped to valuations not seen in years. For South African investors, the clearest link is exposure via Naspers and Prosus, which hold stakes in global tech but are also local market darlings. Alphabet stands out with robust AI-driven growth and a sensible price, bolstered by strong cloud momentum—a rare combination that aligns with Naspers' outlook. Nvidia, despite its hefty AI hype, is surprisingly reasonable on earnings multiples, making it a compelling buy where Prosus gets exposure. Microsoft’s pullback offers a chance, thanks to Azure’s healthy growth and OpenAI ties, but it’s more of a watch-and-wait. Meanwhile, Apple’s premium price and Tesla’s speculative bets on robotaxis make them less attractive now. The biggest caveat: heavy AI investment could either deliver radical growth or hammer profitability, shaking valuations further. this is just my opinion and not financial advice
Buy Naspers and Prosus to access Alphabet and Nvidia indirectly, trim Apple exposure, and avoid Tesla for now. Keep an eye on Microsoft as a potential buy if the cloud story continues to prove out.
- Naspers
- Prosus
- USD/ZAR
- AI-driven spending disappoints, undermining growth expectations
- Rand weakness could amplify offshore tech exposures' currency drag
7/10
The Magnificent Seven tech stocks have pulled back to their cheapest valuations in over a decade. Alphabet tops the ranking as the best buy, combining AI momentum with reasonable valuation, followed by Nvidia and Microsoft. Tesla ranks last due to high speculation around its robotaxi future. All seven companies face risks from massive AI spending that could reshape valuations.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Micah Zimmerman
Categories: Equities, Earnings, Technology, AI, Semiconductors, Autos
Tickers: GOOG, GOOGL, GOOGM, GOOGN, NVDA, MSFT, AMZN, META, AAPL, TSLA
Sentiment: Mixed - Top-ranked pick offering both value and momentum. Only Magnificent Seven member beating the market in 2026. Google Cloud grew 82% last quarter with Gemini AI models gaining ground. Berkshire Hathaway has built a large stake. Second-ranked pick. Despite being the AI boom engine, trades at one of the lowest forward earnings multiples in the group. Demand visibility stretches into trillions with clear AI leadership position.
Keywords: Magnificent Seven, AI stocks, valuation, cloud computing, capital spending, tech stocks
Insights:
- GOOG: Positive: Top-ranked pick offering both value and momentum. Only Magnificent Seven member beating the market in 2026. Google Cloud grew 82% last quarter with Gemini AI models gaining ground. Berkshire Hathaway has built a large stake.
- GOOGL: Positive: Top-ranked pick offering both value and momentum. Only Magnificent Seven member beating the market in 2026. Google Cloud grew 82% last quarter with Gemini AI models gaining ground. Berkshire Hathaway has built a large stake.
- GOOGM: Positive: Top-ranked pick offering both value and momentum. Only Magnificent Seven member beating the market in 2026. Google Cloud grew 82% last quarter with Gemini AI models gaining ground. Berkshire Hathaway has built a large stake.