Ranking The Best Magnificent Seven Stocks To Buy The Motley Fool

Bonisiwe Shabane

-Dec 2, 2025, 11:23 PM

ranking the best magnificent seven stocks to buy the motley fool

The market is now convinced that Alphabet is a leader in artificial intelligence (AI). In a matter of months, Alphabet (GOOG 0.10%) (GOOGL 0.13%) went from one of the worst-performing "Magnificent Seven" stocks to the best-performing year to date, even better than Nvidia. The tech giant's stock price has now more than doubled from its 52-week low and surpassed Microsoft to take the final podium spot alongside Apple and Nvidia as the three most valuable companies in... Welcome to part four in a series of articles where I rank the best Magnificent Seven stocks to buy for 2026. Tesla was the seventh selection, with Apple coming in at No. 6, below Amazon in the fifth position.

Here's why Alphabet is ahead of these names but behind Nvidia, Microsoft, and Meta Platforms. Less than six months ago, Alphabet wasn't just cheaper than its big tech peers -- it was also the only Magnificent Seven stock that was less expensive than the S&P 500. Alphabet's meteoric run-up showcases the importance of narratives in the stock market. Alphabet's business hasn't fundamentally changed, but sentiment has. Earlier this year, there was widespread doubt that Alphabet would be a leader in artificial intelligence (AI). The biggest threat is that Google Search, which accounts for the majority of Alphabet's earnings, may lose market share to other information resources, such as OpenAI's ChatGPT.

Welcome to part five of a seven-article series in which I rank the best "Magnificent Seven" stocks to buy for 2026 (in reverse order). Tesla came in last, followed by Apple as the sixth pick, Amazon at No. 5, Alphabet in the fourth spot, and now Nvidia (NASDAQ: NVDA) winning the bronze. Microsoft and Meta Platforms will go head-to-head for the heavyweight title in two separate upcoming articles. © All rights reserved. Stock prices are provided by BSB-Software

This page uses Cookies. For proper functioning of the page Cookies are needed. You agree to using Cookies by clicking "OK". More infos can be found in our Privacy declaration. If you disagree this service is only available in very limited ways. The "Magnificent Seven" have driven stock market returns for nearly three years.

This member is using AI to outperform across two massive industries. Analysts loved its most recent quarterly earnings, with many raising price targets after the results were published. Over the last few years, the S&P 500 has been dominated by just a handful of stocks. The "Magnificent Seven" accounted for more than half of the total increase in the S&P 500 in 2024, increasing the concentration of the mega-cap stocks in the index. This year has seen a divergence in some of the "Magnificent Seven" names. Just three -- Nvidia, Microsoft(NASDAQ: MSFT), and Meta Platforms -- continued to outperform the index.

While investors may see opportunities in the names that have declined in value so far this year (Apple and Tesla), Wall Street thinks that one of the biggest winners will continue to climb higher. Nvidia's latest earnings show that the company's growth story is intact. The pie is big enough for Nvidia to grow earnings at a breakneck pace even as competitors like Broadcom and AMD land major cloud deals. Welcome to part five of a seven-article series in which I rank the best "Magnificent Seven" stocks to buy for 2026 (in reverse order). Tesla came in last, followed by Apple as the sixth pick, Amazon at No. 5, Alphabet in the fourth spot, and now Nvidia (NASDAQ: NVDA) winning the bronze.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Dan Ives is the managing director and global head of technology research at Wedbush Securities. He is a frequent contributor on financial news programming and actively posts his latest stock predictions on social media. Recently, Ives published his top picks among megacap technology stocks for 2025.

Unsurprisingly, many of his choices are among the "Magnificent Seven." Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free » Below, I'll explore individual catalysts that each of these companies contains and make the case for why 2025 could be a great opportunity to buy these stocks hand over fist. Tesla (NASDAQ: TSLA) is probably the most interesting name on Ives' list.

For much of 2024, shares of Tesla underperformed the broader market. But beginning in early November, shares started going parabolic. All told, Tesla stock gained 62% in 2024 -- nearly triple that of the S&P 500 and more than double the gains seen in the Nasdaq Composite. The "Magnificent Seven" stocks are still some of the best buys in the market. The "Magnificent Seven" is a term coined by CNBC's Jim Cramer that includes some of the leading tech companies in the market. The cohort consists of:

All of these companies (except for Nvidia) have reported results, and investors may be curious as to which ones look like solid buys. I think all of these stocks are growing more interesting each day, but of the seven, I think five are a buy and two are to be watched. Over the past few years, many of these companies have delivered explosive revenue growth, except for Apple. Apple's growth finally returned in Q3 FY 2025, delivering double-digit growth (if you round up) for the first time since early 2022. AAPL Operating Revenue (Quarterly YoY Growth) data by YCharts Written by Trevor Jennewine for The Motley Fool->

The S&P 500 is widely regarded as the best gauge for the overall U.S. stock market. But seven companies -- the "Magnificent Seven" -- account for one-third of its market capitalization. Those seven companies were also responsible for 60% of the gains in the S&P 500 since January 2023. Investors looking for the best Magnificent Seven stock to buy now should consider Wall Street's median price targets, which are listed below in alphabetical order. Beside each target is the implied upside as of Aug.

18. At the median, analysts see upside in every Magnificent Seven stock, but none more so than Alphabet. In other words, Wall Street views Alphabet as the single best Magnificent Seven stock to buy now. Here's what investors should know. Alphabet has two important growth engines in its advertising and cloud computing businesses. Both markets are growing at a steady pace.

Research company eMarketer estimates digital ad spending will increase at 8% annually through 2027, and International Data Corp. estimates public cloud revenue will increase at 19% annually through 2028. Apple and Tesla are starting to look more intriguing at their latest price points. AI buildout is a massive tailwind for nearly all seven of these companies. The "Magnificent Seven" is a term coined by CNBC's Jim Cramer that includes some of the leading tech companies in the market. The cohort consists of:

All of these companies (except for Nvidia) have reported results, and investors may be curious as to which ones look like solid buys. I think all of these stocks are growing more interesting each day, but of the seven, I think five are a buy and two are to be watched. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Before, it was the FAANG stocks.

In recent years, the term "Magnificent Seven" was used to group what the market believes are some of most dominant businesses on Earth. These companies' shares soared, a key factor putting them in investors' good graces. But among these elite businesses, which one is the best Magnificent Seven stock that investors should buy right now? The answer is as clear as day. The Magnificent Seven stock that investors should buy today is Alphabet (GOOGL 0.13%) (GOOG 0.10%). As artificial intelligence (AI) alters how people search for and obtain information, there have been real worries that this internet giant's competitive position is under attack.

However, I don't think investors should worry. Google Search is Alphabet's bread and butter, raking in $50.7 billion in revenue in the first quarter. That figure was up 9.7% year over year and 25.5% higher than exactly two years ago despite the rise of OpenAI's ChatGPT. CEO Sundar Pichai says that the AI Overviews feature is "going very well with over 1.5 billion users per month." Alphabet operates from a position of power because it has "15 products that each serve half a billion people, and six that serve over 2 billion each," according to Pichai. No company has this type of reach and broad adoption, giving Alphabet a unique advantage with its distribution capabilities to introduce new AI features.

And for what it's worth, Google Gemini is already integrated into these offerings.

Ranking The Best Magnificent Seven Stocks To Buy The Motley Fool

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