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Meet the 5 "Magnificent Seven" Stocks That Are Brilliant Buys Now

newsfeedback@fool.com (Keithen Drury)
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⚡ Quantum Brief
Five tech giants—Nvidia, Alphabet, Microsoft, Amazon, and Meta—are highlighted as undervalued buys amid a broader AI-driven market correction, trading below recent highs despite strong fundamentals. Nvidia leads with 70% projected revenue growth in 2026, driven by surging GPU demand for AI, yet trades at 22.2x forward earnings—a rare discount for the world’s largest chipmaker. Alphabet’s Gemini AI model has repositioned it as a top AI contender, with its stock down 10% from peaks, offering a buying opportunity as cloud and AI infrastructure demand accelerates. Microsoft, down 25% from its high, trades at a decade-low 25x earnings, presenting a historic entry point for its diversified AI and cloud dominance. Amazon’s AWS segment, powering 50% of its profits, saw 24% Q4 growth—its best in three years—while Meta’s aggressive AI investments and 20.9x forward P/E underscore deep value in both stocks.
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By Keithen Drury – Mar 21, 2026 at 2:45AM ESTKey PointsNvidia, Meta, and Microsoft trade for relatively cheap valuations.Alphabet and Amazon are seeing huge demand for AI computing infrastructure. The "Magnificent Seven" cohort of stocks has done quite well over the past few years, with many of them thriving from the massive AI building spree going on. However, these stocks have been unloved as of late, and many are well off their all-time highs. This group of seven stocks is made up of: Nvidia (NVDA 3.17%) Apple Alphabet (GOOG 2.25%) (GOOGL 2.01%) Microsoft (MSFT 1.84%) Amazon (AMZN 1.62%) Meta Platforms (META 2.11%) Tesla Of those seven stocks, I think five are great buys. Let's take a closer look. Image source: Getty Images. 1. Nvidia Nvidia may be the largest company in the world, but its stock looks like a screaming buy. It only trades for 22.2 times forward earnings and is expected to deliver incredible growth during this year. Wall Street analysts project Nvidia's revenue will rise at a 70% pace this year, showcasing the huge demand for its graphics processing units (GPUs). ExpandNASDAQ: NVDANvidiaToday's Change(-3.17%) $-5.66Current Price$172.90Key Data PointsMarket Cap$4.2TDay's Range$171.73 - $178.1152wk Range$86.62 - $212.19Volume6.5MAvg Vol174MGross Margin71.07%Dividend Yield0.02% Despite this, Nvidia is down more than 10% from its all-time highs. I think right now is an excellent investment opportunity for Nvidia, as AI demand is still expected to rise for many more years. 2. Alphabet Alphabet is similarly down around 10% from its highs, giving it a breather from when it was setting new record highs day after day toward the end of last year. Last year at this time, Alphabet's AI aspirations were a bit of a joke. Now, Alphabet and its generative AI model, Gemini, are among the top picks, and Alphabet has solidified itself as a force to be reckoned with in the generative AI arms race. ExpandNASDAQ: GOOGLAlphabetToday's Change(-2.01%) $-6.17Current Price$300.96Key Data PointsMarket Cap$3.6TDay's Range$298.29 - $305.7652wk Range$140.53 - $349.00Volume1.6MAvg Vol32MGross Margin59.68%Dividend Yield0.28% Alphabet has the resources to outcompete nearly every competitor in this arena, making it a great long-term AI pick. 3. Microsoft Microsoft may be my favorite pick in this group of five, mainly because of how cheap it is. The stock is down more than 25% from its all-time high, and the valuation is also absurdly cheap compared to where it has traded at over the past decade. MSFT PE Ratio data by YCharts. It's not often that Microsoft reaches a valuation of about 25 times earnings, and every time it has, it has been an excellent buying opportunity. I think Microsoft is a top stock pick right now, as its business is still excelling, but the stock has just fallen out of favor with the market. 4. Amazon Amazon is down around 15% from its all-time high, but it's starting to come roaring back as an AI investment pick. While most may point to its commerce business as why they own Amazon stock, the reality is that Amazon Web Services (AWS), its cloud computing wing, is the best reason. In the fourth quarter, it grew revenue at a 24% pace, the best quarter in over three years. This helped boost Amazon's profitability and growth overall. During Q4, AWS made up 50% of Amazon's operating profits. AWS is a top reason to invest in Amazon's stock. With massive AI demand coming down the pipeline and Amazon's custom AI chip solutions exploding in popularity, I have no doubt that Amazon is poised to continue to be an excellent investment. Today's discount is a gift to investors. 5.

Meta Platforms Meta Platforms is the cheapest stock on this list. It trades for 20.9 times forward earnings, which is less than the S&P 500 (^GSPC 1.51%) trades for (21.2 times forward earnings). Despite that, Meta is also among the fastest-growing members of this list, trailing only Nvidia. NVDA Revenue (Quarterly YoY Growth) data by YCharts. However, the market is a bit concerned about its hefty AI spending and its future outlook, which is why the stock trades at a discount to its peers. While these concerns may be valid, I think they are drowning out the fact that Meta is a great business that's still generating profits. While those profits are being used for AI capabilities, those investments are essentially required to stay relevant in today's AI-driven world. I think Meta could make a strong comeback throughout the year, making it a great investment option now.Read NextMar 21, 2026 •By Danny Vena, CPAPrediction: This Will Be Nvidia's Stock Price by the End of 2026Mar 20, 2026 •By Geoffrey Seiler3 Bargain Stocks the Market Is Mispricing After the Recent Sell-OffMar 20, 2026 •By Patrick SandersThe Best Stocks to Invest $10,000 In Right NowMar 20, 2026 •By Adam Spatacco3 AI Stocks Trading at Bargain Prices After the Recent Sell-OffMar 20, 2026 •By Will Healy2 Stocks That Can (Mostly) Escape the Impact of High Oil PricesMar 20, 2026 •By Neil PatelIs Nvidia Stock Going to $500?About the AuthorKeithen Drury is a contributing Motley Fool technology analyst covering AI, semiconductors, cybersecurity, and SaaS stocks. In addition to The Motley Fool, Keithen is a mechanical engineer and has held roles at Honeywell and smaller industrial companies like Brand Hydraulics and Lincoln Industries. He holds a bachelor’s degree in mechanical engineering from Dordt University.TMFTripleOptionStocks MentionedNvidiaNASDAQ: NVDA$172.90(-3.17%)-$5.66S&P 500 IndexSNPINDEX: ^GSPC$6,506.48(-1.51%)-$100.01MicrosoftNASDAQ: MSFT$381.87(-1.84%)-$7.15AlphabetNASDAQ: GOOGL$300.96(-2.01%)-$6.17AmazonNASDAQ: AMZN$205.29(-1.66%)-$3.47Meta PlatformsNASDAQ: META$593.90(-2.11%)-$12.81AppleNASDAQ: AAPL$248.01(-0.38%)-$0.96TeslaNASDAQ: TSLA$367.96(-3.25%)-$12.34AlphabetNASDAQ: GOOG$298.85(-2.25%)-$6.88*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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