Analyst Backs 4 Magnificent Seven Stocks as Only 2 Beat S&P 500's 13% Gain
Updated
Updated · Yahoo Finance · Aug 14
Analyst Backs 4 Magnificent Seven Stocks as Only 2 Beat S&P 500's 13% Gain
3 articles · Updated · Yahoo Finance · Aug 14
Summary
Nvidia, Alphabet, Microsoft and Amazon were singled out as the best Magnificent Seven buys, while Apple, Meta Platforms and Tesla were flagged as stocks to avoid.
Only Amazon and Nvidia are outperforming the S&P 500's roughly 13% gain in 2026, underscoring the group's uneven year despite its dominance among the world's largest companies.
Nvidia's case rests on direct AI-chip demand and projected rapid growth through this year and next, making it the clearest beneficiary of the AI spending boom.
Alphabet, Microsoft and Amazon were favored because their heavy AI infrastructure spending can be monetized through cloud businesses that rent computing capacity at a profit.
Tesla's weak EV sales and low profitability, Meta's shaky AI strategy and poor latest quarter, and Apple's premium valuation plus rising memory-chip costs drove the bearish calls.