The 3 Biggest Bargain "Magnificent Seven" Stocks to Buy Today

The "Magnificent Seven" stocks have long been market leaders, commanding premium valuations relative to the broader market. However, that premium has shrunk, and the group -- which includes Alphabet, Amazon, Apple, Meta Platforms (NASDAQ: META), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and Tesla -- now trades at its lowest-ever relative valuation compared to the rest of the S&P 500.

Let's look at the three biggest bargains in the group.

Image source: The Motley Fool.

1. Nvidia

Based on a one-year forward price-to-earnings (P/E) ratio, Nvidia is the cheapest stock among the Magnificent Seven, trading at just above 16 times analyst estimates for fiscal 2028 (ending January 2028). This is despite the company consistently having the highest revenue growth of the group over the past few years.

The company has carved out a niche with its graphics processing units (GPUs) to become the dominant provider of the chips that train AI models. Meanwhile, its CUDA software platform, which is where most foundational AI code was written, gives it a wide moat to maintain its leadership in this area.

However, Nvidia isn't resting on its laurels; it's transforming itself from simply a GPU maker into a company that can deliver complete end-to-end AI infrastructure server solutions designed to handle specific AI tasks, including training, inference, and agentic AI. It has a top-notch networking portfolio to provide the plumbing for these servers, while it has developed its own central processing units (CPUs) to help handle agentic AI. Meanwhile, the company's "acquisition" of Groq gave it chips that allow it to help speed up inference. This should all set Nvidia up for continued strong future growth.

2. Meta Platforms

With a forward P/E of just above 18.5 times 2027 analyst estimates, Meta Platforms looks like one of the most attractively priced megacap growth stocks in the market today.

The stock has been hampered by fears over the company's massive spending on AI infrastructure; however, Meta is looking into creating a cloud computing unit due to such high third-party demand for compute power, which should help allay those fears. Meanwhile, Meta has been one of the best companies at using AI to drive growth within its core business.

Meta's ad-driven social media business has become the perfect AI flywheel. It uses AI to improve its recommendation engine, which in turn keeps users on its site longer, allowing it to serve more ads. At the same time, its AI-powered tools are helping advertisers better connect with users and convert them into customers, increasing demand for its ads and driving up prices. The better its AI solutions become, the stronger growth it helps drive, and the introduction of its Spark Muse 1.1 model could be its next growth driver.

Throw in the opportunities it should see ramping up ads on its WhatsApp and Threads platforms, and Meta looks like it has a long runway of growth ahead.

3. Microsoft

Trading at a forward P/E of 20.5 times analyst estimates for fiscal 2027 (ending June 2027), Microsoft is the third-cheapest Magnificent Seven stock on a forward P/E basis. Given that it has a 27% stake in OpenAI, that valuation looks even cheaper below the surface.

While there are some worries that AI could disrupt Microsoft's core enterprise software business, this seems unlikely. The company is deeply embedded within enterprises and has a massive user base that is well versed in its suite of programs, which includes Word, Excel, PowerPoint, and others. The cost is also relatively cheap on a per-user basis, making switching unattractive, especially when you factor in the security and compliance features built into Microsoft 365. This is a solid business that has been growing nicely, led by the increasing adoption of its AI Copilot assistants.

Meanwhile, the company's cloud computing unit, Azure, continues to see rapid growth, and huge commitments from OpenAI, and to a lesser extent Anthropic, should fuel continued strong growth for many years to come. The company needs to improve its internal AI tech stack, but its partnership with OpenAI gives Microsoft time to catch up.

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