“Magnificent Seven” is not just a Western 1960. It is also a group of technological stocks that led Nasdaq(Nasdaqindex: ^ixix) to two -digit gains in the last two years. I speak o Alphabet (Nasdaq: Goog)(Nasdaq: Googl),, Amazon,, Apple,, Meta platform(Nasdaq: Meta),, Microsoft,, Nvidiaand Tesla. These technological players have shown their ability to achieve growth. More recently, they have shown their forces in the highly potential field of artificial intelligence (AI), a market that is expected to bring $ 1 billion dollars by the end of the decade.
So it is not surprising that these players caught investors and increased as Ai boom progressed. But lately, the magnificent seven has not been a leading profit. Instead, they fell. How do investors take care of the effect Imported Tariff President Donald Trump I can have an economy, companies depending on growth saw that their shares were falling. This left the Nasdaq on the correction territory, and the magnificent seven players with much lower estimates a few weeks ago.
But here are some convincing news: although economic troubles could strive for these and other companies in the short term, the long -term AI story remains cordial and companies invest billion dollars a year on their platform. So, now is a great time to invest in AI players with solid long -term potential. Let’s check these two favorable magnificent seven shares.
Picture source: Getty Images.
The target is a leader on social networks, through Facebook, Messenger, Whatsapp and Instagram. More than 3.3 billion people use at least one of these platforms daily. Therefore, it is not surprising that advertisers rush to the target to reach people where they know they can find them. This brings billions of dollars in revenue a year for a technological giant.
But the target is not just on social networks. The company has Great AI ambitions and invests accordingly. The target is already on the version of the four of its large linguistic models, llam. This is a key tool for the power supply of their AI systems, such as AI of Assistant on their Social Media platforms. The efforts can be at an early stage. A few weeks ago, the target said that capital consumption this year can reach as much as $ 65 billion that the company implements AI growth. This includes the construction of a data center that will be so large that it could cover a good part of Manhattan.
How will the target end up in this end? The target aims to create ai assistants for all of their users, something that could keep people on applications longer – and encourage advertisers to spend more there. Investment can also lead to new products and services with a meta down the road.
Today, this ambitious and profitable technological giant trades only for estimates of 23x earnings. It is with more than 29x just a few weeks ago, which makes it an excellent purchase.
Alphabet may be best known about something that many of us use every day: Google search. The company owns this, the most popular search engine with about 90% of the market share, and revenues generate while advertisers are connected with us there. But the alphabet has another significant source of income – one that grows in two -core digits. I’m talking about Google Cloud, a cloud computing company.
In the recent quarter, this job brought an increase in revenue of 30% to $ 12 billion. This growth was led by his presence in AI. Alphabet controls the global network of data centers and builds products and services that customers need when developing and managing AI platform. So, by presenting it in a “full stack”, the alphabet can gain efficiency and keep customers back.
That gave solid results. Alphabet says his customers are now using more than eight times more than calculating they used just eighteen months ago. This is for key AI tasks of training and inference models. So, the alphabet immediately creates revenue growth because customers sell their AI products and services. On top of that, the company uses its ai tools to make its own products – like Google Search – getting better and better.
Currently, the alphabet is the cheapest of the magnificent seven shares, trading for estimates of 18x earnings. This makes it fantastic – and a cheap way to ride an AI investment wave.
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Randa Zuckerberg, former director of the development of the market and spokeswoman for Facebook and sister of Meta Platform Executive Director Mark Zuckerberg, is a member of the Board of Directors Motley Fool. John Mackey, former Whole Foods Market CEO, Amazon Branch, is a member of the Board of Directors Motley Fool. Suzanne Frey, Executive Director of Alphabeta, is a member of the Board of Directors Motley Fool. Adria Cimino He has positions in Amazon and Tesla. Motley Fool has positions and recommends alphabet, Amazon, Apple, Meta platform, Microsoft, Nvidia and Tesla. Motley Fool recommends the following options: Long January 2026. $ 395 calls Microsoft and short January 2026. $ 405 calls to microsoft. Motley Fool has disclosure rules.
