5 "Magnificent Seven" Stocks I'm Buying and 2 That I'm Selling
2026-07-19 12:05
•Keithen Drury •The Motley Fool
••••••• •••••••••• Axe Capital view
Picking Winners and Shedding Losers Among Tech Giants
Backing Nvidia, Alphabet, Amazon, Microsoft, and Meta for AI-driven growth while avoiding Apple and Tesla due to rich valuations.
The buzz around AI and data centers is more than hype. Nvidia stands out with an 85% year-on-year growth, poised to nearly double next quarter, as hyperscalers pour an estimated $1 trillion into new computing capacity. This tailwind benefits other tech giants like Alphabet, Amazon, Microsoft, and Meta, all ramping up AI investments at attractive valuations compared to Apple and Tesla. South African investors should watch how this plays out through USD/ZAR; a strong tech cycle could support a firmer rand given foreign inflows. Meanwhile, Apple’s premium price tag and lack of AI growth catalysts make it tough to justify, especially with potential margin pressure from rising component costs. Tesla trades as more of a visionary story than an earnings machine—high hopes, but fundamentals don’t back the valuation. That said, a surprising breakthrough from Apple or renewed EV enthusiasm could quickly upend this view. this is just my opinion and not financial advice
Buy Nvidia and the core AI-investing tech stocks like Alphabet, Amazon, Microsoft, and Meta. Avoid Apple and Tesla for now due to stretched valuations and weaker growth prospects.
- NVDA
- GOOG
- AMZN
- MSFT
- META
- USD/ZAR
- Slower-than-expected AI adoption
- Sudden rand depreciation with emerging market risk-off
7/10
An analyst recommends buying five of the Magnificent Seven tech stocks (Nvidia, Alphabet, Amazon, Microsoft, and Meta) while selling Apple and Tesla due to expensive valuations. The five recommended stocks benefit from massive AI computing capacity investments by hyperscalers, with Nvidia positioned to gain the most from the expected $1 trillion in data center spending next year.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Keithen Drury
Categories: Equities, Earnings, Commodities, Technology, AI, Semiconductors, Autos
Tickers: NVDA, GOOG, GOOGL, GOOGM, GOOGN, AMZN, MSFT, META, AAPL, TSLA
Sentiment: Mixed - 85% YoY growth with expected ~100% growth next quarter; positioned to benefit most from $1 trillion projected data center spending; makes GPUs critical for AI infrastructure Cheaper valuation than Apple/Tesla; strong revenue growth; investing heavily in AI computing capacity with expected acceleration
Keywords: Magnificent Seven, AI computing, data center spending, valuation, revenue growth, GPU demand
Insights:
- NVDA: Positive: 85% YoY growth with expected ~100% growth next quarter; positioned to benefit most from $1 trillion projected data center spending; makes GPUs critical for AI infrastructure
- GOOG: Positive: Cheaper valuation than Apple/Tesla; strong revenue growth; investing heavily in AI computing capacity with expected acceleration
- GOOGL: Positive: Cheaper valuation than Apple/Tesla; strong revenue growth; investing heavily in AI computing capacity with expected acceleration