2 Magnificent Seven Stocks that are Screaming Buys Today

By the end of last year, Magnificent Seven stocks may have seemed out of reach for many investors. These top technology players saw their shares surge -- and they even led gains in the S&P 500 index -- on optimism about the ability of artificial intelligence (AI) to revolutionize business and our daily lives. The Magnificent Seven players have been aggressively investing in AI, and many of them are leaders in the field, generating billions of dollars in revenue from the technology.

But in recent weeks, these leading tech companies have seen their shares decline amid concerns about spending in a potentially difficult economy. President Donald Trump announced a plan for tariffs on imports -- and the concern is that will lead to higher prices on a wide variety of goods and eventually that situation will weigh on the consumer's wallet and corporate earnings.

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This is a near-term risk, but it's important to remember that many well-established companies have what it takes to manage headwinds and grow over the long term. That's why now is the perfect time to go bargaining hunting, picking out quality stocks trading at low valuations after these recent declines. With that in mind, here are two Magnificent Seven stocks that are screaming buys right now.

Image source: Getty Images.

1. Nvidia

I might surprise you when I say one of the best deals around right now isn't necessarily on a small high-risk AI player but instead on the world's top AI company -- one that's proven itself to be key to the industry's development. I'm talking about Nvidia (NASDAQ: NVDA), the leading maker of AI chips and a company that's generated record earnings quarter after quarter thanks to this market position.

Yes, recent stock market declines even hurt Nvidia, dragging it lower so that it now trades at 25x forward earnings estimates -- that's down from about 50x earlier this year. Investors worried that any economic weakness could weigh on the spending plans of Nvidia's customers, but so far, that hasn't happened. In recent earnings reports, top customers such as Microsoft have reiterated their focus on investing in AI. This bodes well for Nvidia's upcoming earnings report and the ones to follow.

Meanwhile, Nvidia's innovation -- including a pledge to update its chips on an annual basis -- should keep it ahead of rivals. Today's tech giants are keen on using the very latest AI tools to supercharge their platforms, and that keeps them coming back to Nvidia.

Finally, it's important to note that Nvidia's financial strength, with $43 billion in cash and a high level of profitability on sales -- gross margin has consistently surpassed 70% -- position it well to handle any potential headwinds and win over the long term. That's why, at today's price, it's a screaming buy.

2. Alphabet

Want to get in on the very cheapest Magnificent Seven stock right now? That's a great idea considering the overall strength of this company in two key markets. This player is Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), global leader in the Internet search market through its Google Search platform -- it holds about 90% market share. And Alphabet, through Google Cloud, also is one of the world's top cloud computing companies.

These two businesses are helping Alphabet generate billions of dollars in quarterly revenue -- and Alphabet's investment in AI has already started supercharging earnings potential. For example, demand for AI infrastructure and generative AI helped Google Cloud report a 28% increase in revenue in the most recent quarter.

Alphabet is winning in AI by offering AI to customers through Google Cloud, and the company also is winning as it uses AI to improve its business. An example here is the company's development of large language model, Gemini, and how it's applied this tool to improve Google Search. In recent quarters, Alphabet has said its use of AI in Google Search has resulted in people relying on Google Search more and more.

This is important because Alphabet makes most of its revenue through advertising across the Google platform -- and if people spend more time on Google, advertisers are more likely to keep spending here to reach that audience and even boost spending.

All of this makes Alphabet, trading at only 17x forward earnings estimates, look like a buying opportunity you won't want to miss out on right now.

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*Stock Advisor returns as of May 5, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.