Ranking the Best "Magnificent Seven" Stocks to Buy Right Now

The "Magnificent Seven" cohort is made up of seven of the largest tech stocks in the world. The seven members are (ranked from largest to smallest by market cap):

1. Nvidia (NASDAQ: NVDA)
2. Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL)
3. Apple (NASDAQ: AAPL)
4. Microsoft (NASDAQ: MSFT)
5. Amazon (NASDAQ: AMZN)
6. Tesla (NASDAQ: TSLA)
7. Meta Platforms (NASDAQ: META)

Up until the Space Exploration Technologies, better known as SpaceX, initial public offering (IPO), these seven made up 10 of the largest companies in the world. However, Meta has been pushed out of the top 10 thanks to SpaceX.

These seven companies still hold dominance in the market and control a large amount of the indexes due to market cap weighting. Let's take a look and determine which ones are the best buys and make the most sense to load up on.

Image source: Getty Images.

7. Apple

At the bottom of my list is Apple. The reason is quite simple: It's growing its revenue and earnings per share (EPS) somewhat slowly compared to most members, ranking fifth and sixth, respectively, for each company's most recent year over year quarterly results. It's also expensively valued at 35 times forward earnings, Apple isn't cheap and is a major premium over many of its peers.

Furthermore, Apple's artificial intelligence (AI) strategy so far seems to be lagging behind the competition, which could become a major problem in the future. As a result, I think it's OK to steer clear of the stock.

6. Tesla

Tesla is a bit of a wildcard in the Magnificent Seven. All of the other six companies are highly profitable, whereas Tesla doesn't come close.

NVDA Net Income (TTM) data by YCharts.

Tesla has many upcoming opportunities to turn business prospects into profits, but until then, I'm comfortable sitting on the sidelines.

5. Alphabet

While Alphabet is only one spot ahead of Tesla, I think there's a huge chasm between the two stocks, and this is where stocks I'd feel comfortable buying today begin. Alphabet has had an incredible year, doubling over the last 12 months. This rise occurred for two reasons: First, Alphabet finally earned the market respect it deserved for its AI plan and execution. Second, Alphabet has been rapidly growing for its size, which contributed to its rise.

However, I think the stock is fully valued now at 25 times forward earnings, and there are better opportunities in the Magnificent Seven.

4. Amazon

Amazon may be a bit more expensive at 28 times forward earnings versus Alphabet, but there is more growth coming. Most of Amazon's profits come from its cloud computing service, Amazon Web Services (AWS). This year, it's spending $200 billion on data center capital expenditures (capex) to increase its capacity to meet soaring consumer demand. CEO Andy Jassy told investors that it already has customers lined up to use this new capacity, which will lead to monster growth in the near future.

This creates an environment where Amazon's profits could soar over the next few years, making it an exciting stock to invest in now.

3. Meta Platforms

Meta Platforms is in the top three, and this is where I'd consider the stock a strong buy. The reason is fairly simple: Meta is a solid business, yet it's incredibly cheap. It's the cheapest stock in the Magnificent Seven by far, trading for just 17.5 times forward earnings. That's cheaper than the S&P 500 (SNPINDEX: ^GSPC), which trades for 18 times forward earnings.

Despite its low price, Meta is among the fastest-growing, with revenue rising an impressive 33% year over year in the first quarter. I think there's a big price mismatch here, which makes Meta a great stock to buy now.

2. Microsoft

Microsoft has had a historical sell-off over the past few months, and it's a likely candidate for a rebound. It's down over 30% from its all-time high, yet its business is doing quite well, with revenue rising 18% and diluted earnings per share increasing 23% year over year.

Despite these strong results, Microsoft trades for just 19 times fiscal year (FY) 2027 earnings (FY 2027 begins on July 1). That's a compelling price to pay for a company widely recognized as one of the AI infrastructure leaders, making it a smart buy today.

1. Nvidia

Last, but certainly not least, is Nvidia. Nvidia has been the powerhouse among the Magnificent Seven over the past few years, but it hasn't been so in 2026. The market is worried about AI spending not lasting, but Nvidia told investors that it expects AI hyperscaler spending to rise from $650 billion in 2026 to $1 trillion in 2027. Nvidia is in close contact with these companies to ensure that it has the capacity to meet demand, so it's likely that investors can trust this projection.

Despite obvious growth coming again in 2027, Nvidia trades for 21.7 times forward earnings -- the same price as the S&P 500. That's a steal of a price for Nvidia's stock, and I think it's the most compelling buy of the group as a result.

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.