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The "Magnificent Seven" group of stocks describes some of the leading tech stocks in the market. While some of these stocks aren't as dominant as they were a few years ago, when this grouping was first formed, they still comprise the largest stocks listed on the U.S. stock market. It's made up of: Nvidia ( NVDA -1.84% ) Apple ( AAPL -0.28% ) Alphabet ( GOOG +0.37% ) ( GOOGL +0.45% ) Microsoft ( MSFT +1.08% ) Amazon ( AMZN +0.27% ) Meta Platforms ( META -0.11% ) Tesla ( TSLA -1.29% ) I currently own every stock on this list, but there are three that I'm keen to buy more of: Nvidia, Alphabet, and Amazon.
Why? These three have a lot to gain from the artificial intelligence build-out. Image source: Getty Images.
Amazon and Alphabet's cloud computing businesses are booming Amazon and Alphabet are two of the major providers of cloud computing services . Amazon Web Services (AWS) and Google Cloud are typically ranked as the largest and third-largest in their industry, and each is spending heavily to maintain that status. In 2026, Amazon's data center capital expenditures are expected to be $220 billion, while Alphabet's are expected to be about $200 billion.
If these two are spending that much, why are their stocks a buy? AMZN Amazon $254.76 +$0.68 (+0.27%) NASDAQ · As of 4:00 PM ET 10/15/26 It all has to do with the return on investment these two are generating, and I think it will be quite high. Starting with Alphabet, Google Cloud is growing at an unbelievable pace.
In Q2, Google Cloud's revenue rose 82% year over year, and it posted an impressive 36% operating margin. That growth was a major boost to the company overall, and with over $500 billion in backlog to churn through, Alphabet needs the computing power. While it's spending heavily right now, it will eventually generate a much larger profit.
GOOGL Alphabet $349.22 +$1.58 (+0.45%) NASDAQ · As of 4:00 PM ET 10/15/26 Amazon is in the same boat, as AWS grew at 37% in Q2 -- much faster than its commerce division. However, AWS has a far higher profit margin. So, despite generating about 21% of revenue in Q2, it accounted for 60% of operating profits.
This means that as AWS's growth rate accelerates due to new computing capacity coming online, its profits will grow even faster. That bodes well for the stock, making Amazon a great Magnificent Seven investment . But what about Nvidia?
Nvidia is the major computing power dealer While Amazon and Alphabet have custom AI computing chips they're using in their data centers, the bulk of their computing power still comes from GPUs made by Nvidia. GPUs are synonymous with AI computing power, and nearly every client of Alphabet and Amazon is familiar with and uses Nvidia GPUs. So, the cloud computing providers must keep buying Nvidia chips to satisfy client demand.
NVDA Nvidia $217.23 -$4.07 (-1.84%) NASDAQ · As of 4:00 PM ET 10/15/26 Alphabet and Amazon's big spending in 2026 is providing Nvidia a major boost. However, the build-out is far from over. Nvidia informed investors last quarter that the big five AI hyperscalers will spend nearly $800 billion on data centers this year.
Next year, that figure rises to $1.3 trillion. That's a huge boost and will provide Nvidia with major growth. Nvidia didn't shy away from offering an estimated 2027 growth rate, projecting an impressive 70% increase in revenue.
That's far higher than any other company in the Magnificent Seven, continuing Nvidia's outperformance trend. NVDA Revenue (Quarterly YOY Growth) data by YCharts Nvidia may be the biggest, but it's still the best. And I think it's still the top stock to buy in the Magnificent Seven, although Amazon and Alphabet are great picks too.
Keithen Drury has positions in Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy .
Source: The Motley Fool
