By Keithen Drury
Publication Date: 2026-09-26 15:30:00
The “Magnificent Seven” is a popular grouping of stocks that includes some of the largest companies in the world. In fact, every company in the Magnificent Seven is among the 10 largest U.S.-listed stocks. It consists of:
- Nvidia (NVDA +0.22%)
- Apple (AAPL +1.53%)
- Alphabet (GOOG +0.61%) (GOOGL +0.46%)
- Microsoft (MSFT +3.66%)
- Amazon (AMZN +0.12%)
- Meta Platforms (META -3.33%)
- Tesla (TSLA -1.54%)
Those seven companies have been long-term success stories, but the reality is that not every one on that list is a great buy. The three that I think make for the best buys are Nvidia, Alphabet, and Amazon. While the other four may have some investing merits, these are the three that I think will provide the best returns moving forward, and it’s where I’m focusing.
Image source: Getty Images.
Nvidia
Nvidia is the largest company in the world at about a $5.4 trillion market capitalization. But there’s one thing: I think it’s grossly undervalued. While that may fly in the face of common assessment, the reality is that the AI arms race is only intensifying, and Nvidia estimates that the big five AI hyperscalers will spend $1.3 trillion on data center capital expenditures in 2027, up from nearly $800 billion in 2026. With Nvidia being the primary AI computing unit supplier, this bodes well for it, which is why it issued 70% revenue growth guidance for 2027. That’s faster than any other company in the Magnificent Seven by far.
Also, none of that is baked into the stock price. Currently,…
