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The Most Overlooked Artificial Intelligence (AI) Stocks in the "Magnificent Seven" for 2026

newsfeedback@fool.com (Keithen Drury)
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⚡ Quantum Brief
Microsoft and Amazon lead cloud computing with 39% and 24% YoY growth in Q4 2025, respectively, positioning them as overlooked AI infrastructure powerhouses amid surging demand. AI adoption remains below 20% globally, signaling massive untapped potential for cloud providers as enterprises scale deployments, with both companies aggressively expanding data center capacity. The article identifies Microsoft and Amazon as undervalued compared to historical forward P/E ratios, trading at discounts despite dominating the $2.2T+ cloud market essential for AI development. While Nvidia, Meta, and Tesla garner AI headlines, Microsoft’s Azure and Amazon’s AWS quietly generate high-margin revenue, funding further AI infrastructure investments with long-term profitability. Analysts highlight this as a rare buying opportunity before AI-driven cloud demand accelerates, with both stocks offering exposure to foundational AI growth beyond consumer-facing applications.
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By Keithen Drury – Mar 15, 2026 at 6:25PM ESTKey PointsMicrosoft and Amazon operate the two largest cloud computing services.AI adoption hasn't reached 20% yet. The "Magnificent Seven" is a group of stocks that are often pointed to as market leaders. Currently, all seven are among the world's top-10 largest companies. That's an impressive spot to be in, and the group is made up of: Nvidia (NVDA 1.56%) Apple (AAPL 2.15%) Alphabet (GOOG 0.58%) (GOOGL 0.42%) Microsoft (MSFT 1.57%) Amazon (AMZN 0.87%) Meta Platforms (META 3.77%) Tesla (TSLA 0.96%) All seven of these stocks have delivered strong investor returns over the past decade, but the question is, which ones will be the best to own going forward? I think two members have been overlooked in the Magnificent Seven, and they look like screaming buys right now. Image source: Getty Images. Some of these stocks get huge headlines daily It's hard to call the world's largest company by market cap overlooked, so Nvidia is out for my list. Apple products are front of mind for many consumers, and it's a well-publicized company, so it's also eliminated. Furthermore, Apple's artificial intelligence (AI) strategy has been relatively weak, so I'd hesitate to call it an AI company. Alphabet has seen its shares rally massively over the past year thanks to its comeback in the generative AI world, and Gemini is among the top options available, so I wouldn't consider it overlooked, either. Meta Platforms and Tesla are both trying to position themselves as AI-first companies, although their adoption of AI shows up in different ways. Tesla is integrating AI in its vehicles through autonomous driving and also has other exciting offerings in the works, like its Optimus robot. Meta is working on several AI products, as well as integrating the technology into its social media platforms. Both of these are well-known in the AI realm and don't qualify as "overlooked." That leaves Microsoft and Amazon as the last two, and I think AI investors need to take another look at them. Amazon and Microsoft are making money from AI right now While Amazon and Microsoft are both integrating AI into their everyday inner workings, the real money maker is cloud computing. Amazon and Microsoft are in first and second place in terms of cloud computing market share, and each is seeing huge growth in this sector. During the fourth quarter, Microsoft Azure's revenue rose 39% year over year.

Amazon Web Services (AWS) didn't have as fast a growth rate, rising 24%. However, that growth rate was its best quarter in over three years. ExpandNASDAQ: AMZNAmazonToday's Change(-0.87%) $-1.83Current Price$207.70Key Data PointsMarket Cap$2.2TDay's Range$206.23 - $210.5652wk Range$161.38 - $258.60Volume1.6MAvg Vol49MGross Margin50.29% These businesses are cash cows, and with insatiable AI demand, both Microsoft and Amazon are understandably spending billions of dollars on data centers to meet that demand. Once the money has been spent to bring the new computing infrastructure online, each company will be able to generate high-margin revenue that boosts profitability. While each company has a different primary business they're known for, their cloud computing segments are a good enough reason to buy their stocks. On another note, both stocks trade at a discount to recent levels. MSFT PE Ratio (Forward) data by YCharts. Since 2024, these two have consistently traded with a forward price-to-earnings ratio -- based on estimates -- in the low-30s. Now, they trade at a decent discount to those levels. If you've been waiting to buy these two, there has seldom been a better opportunity over the past few years to scoop up these stocks. Businesses haven't even scratched the surface of what's possible with AI. According to research done by The Motley Fool, less than 20% of businesses currently use AI. That number should skyrocket over the next few years and drive demand for cloud computing services from these two. Right now is a golden buying opportunity, and investors shouldn't squander it.Read NextMar 15, 2026 •By John BromelsPrediction: The Iran War Will Reshape Where AI Gets Built for the Rest of 2026Mar 15, 2026 •By Marc Guberti3 Top Buffett Stocks to Buy and Hold for the Long HaulMar 13, 2026 •By Stefon Walters2 Top Tech Stocks to Buy in MarchMar 13, 2026 •By Daniel SparksMicrosoft vs. Amazon: Which AI Stock Is a Better Buy?Mar 11, 2026 •By Neil RozenbaumIs Amazon Stock a Buy Right Now?

Why This Tech Giant Still Looks UndervaluedMar 10, 2026 •By Jose NajarroOpenAI Gave Amazing News to Amazon ShareholdersAbout 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 MentionedAmazonNASDAQ: AMZN$207.70(-0.87%)-$1.83MicrosoftNASDAQ: MSFT$395.54(-1.57%)-$6.32Meta PlatformsNASDAQ: META$614.10(-3.77%)-$24.08AlphabetNASDAQ: GOOGL$302.27(-0.42%)-$1.28AppleNASDAQ: AAPL$250.27(-2.15%)-$5.49TeslaNASDAQ: TSLA$391.54(-0.88%)-$3.47NvidiaNASDAQ: NVDA$180.28(-1.56%)-$2.87AlphabetNASDAQ: GOOG$301.52(-0.56%)-$1.69*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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