4 No-Brainer "Magnificent Seven" Stocks to Buy Right Now

The so-called "Magnificent Seven" stocks have helped power the market higher for the past few years. However, just like other stocks, these names have pulled back in recent weeks over macroeconomic concerns affecting earnings, some angst about the potential for diminishing returns related to artificial intelligence (AI), and uncertainty over tariff actions by the Trump administration.

But pullbacks tend to be short-term setbacks for great companies that eventually find ways to recover. Let's look at the best four of these Magnificient Seven stocks to buy right now and take advantage of this dip.

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1. Nvidia

Nvidia (NASDAQ: NVDA) has been a growth machine, pure and simple. The company has more than doubled its revenue in each of the past two years, while analysts are projecting revenue will increase by at least another 50% this year.

Nvidia's graphic processing units (GPUs) provide the processing power needed to help train AI models and run inference. Meanwhile, its CUDA software platform, which allows customers to more easily program chips for various tasks and provides a collection of AI libraries and microservices, has given the company a huge competitive advantage. With that moat, it's been the biggest winner of the current AI infrastructure buildout, and it appears poised to continue in that position.

Trading at a forward price-to-earnings ratio (P/E) of 24 based on this year's analyst estimates and a price/earnings-to-growth (PEG) ratio below 0.5, Nvidia's stock is attractively valued. Stocks with PEGs below 1 are typically viewed as undervalued, putting Nvidia in the bargain bin as long as AI infrastructure spending remains strong.

2. Amazon

Amazon (NASDAQ: AMZN) is a leader in both e-commerce and in cloud computing, where its Amazon Web Services (AWS) has the No. 1 market share. The company is investing heavily in AI throughout its businesses. AI is helping improve its logistic and warehouse networks, which is creating efficiencies and improving profitability.

AWS is providing strong growth, as it helps customers build and deploy their own AI models. It does this through its Bedrock and SageMaker solutions. With Bedrock, customers can pick from several pre-trained AI foundation models, from Amazon or other leading companies, to help build applications. SageMaker, meanwhile, can be used to build, train, and deploy more customized models.

Amazon has a history of spending big to win big, and it's doing just that with AI. It plans to invest around $100 million in data center capital expenditures (capex) this year to help keep up with demand. The company has also developed its own custom AI chips for training and inference, which can help with performance and lower the costs of training and deploying AI models on AWS.

3. Alphabet

Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is the world's largest digital advertising company, through its market-leading Google Search platform and its video-streaming service YouTube. It also owns the third-largest cloud computing platform, Google Cloud. It's at the forefront of other emerging technological trends such as quantum computing, and autonomous driving (through its robotaxi unit Waymo). It's also in the process of buying the fast-growing cybersecurity company Wiz.

Image source: Getty Images

Cloud computing has been its fastest-growing business, with revenue climbing 30% last quarter and operating income soaring 142%. Growth is being fueled by AI, as customers use Google Cloud's Vertex AI platform to leverage its Gemini foundation model in order to build out their own custom models and applications. Like Amazon, Alphabet has developed its own custom AI chip, to help improve inference times and to lower costs, which it uses in conjunction with Nvidia's GPUs.

Meanwhile, the company should have a big opportunity to eventually monetize its AI Overviews with different ad formats. Google has traditionally only attached ads to about 20% of its search queries, so this should open up a new revenue source without a lot of cannibalization.

Trading at a forward P/E of only about 17, the stock is astoundingly cheap given the set of market-leading and emerging business Alphabet owns.

4. Meta Platforms

The world's second-largest digital advertising company (behind Alphabet), Meta Platforms (NASDAQ: META) is a leader in social media and messaging apps. The company's collection includes Facebook, Instagram, WhatsApp, and its newest platform Threads.

Threads has been growing its user base quickly, and could be a nice growth driver once Meta begins monetizing the platform. At the moment, though, it's still building out the user base, adding about 1 million users a day. The platform had 320 million monthly active users at the end of 2024.

Meanwhile, Meta has been leaning into AI with its Llama AI model. It has said Llama is leading to more user engagement and people spending more time on its apps. It's also using Llama to help advertisers create better campaigns and better target potential customers. This has led to both increasing ad load and higher ad prices. Last quarter, Meta's revenue climbed 21%, with ad impressions rising 6% and average ad prices up 14%.

The stock is also attractively valued, trading at a forward P/E of only about 23. Its core business is even cheaper, though, as Meta recorded around $17.7 billion in losses last year in its Reality Labs segment, home to its metaverse ambitions.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $281,057!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $42,114!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $502,905!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

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*Stock Advisor returns as of April 1, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.

Geoffrey Seiler has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy.