The Only Artificial Intelligence (AI) Stock in the "Magnificent Seven" That's Worth Buying After the Correction

By James Hires – Apr 12, 2026 at 7:08PM ESTKey PointsAlphabet competes both on the software side of the industry with Google Gemini and on the hardware side with its TPU. The company continues to have absolutely stellar financials. With the recent pullback in artificial intelligence (AI) stocks, it's beginning to look as if the hype behind the technology is beginning to fade. That's bad news for smaller start-ups in the space that are still reliant on large amounts of investor dollars. However, it's great news for investors and for the larger companies involved in AI. Investors benefit when AI stocks fall to a more reasonable level. And for larger companies, like Alphabet (GOOG 0.21%) (GOOGL 0.41%), anything that pushes smaller competitors out can be a good thing. Alphabet is a giant and it's stock has fallen over the past month. I think it's the only AI stock in the "Magnificent Seven" that's worth buying right now. Image source: Getty Images. Spelling it out Alphabet is the parent company of Google after all, and I'm willing to bet you've interacted with that website recently. It's also been far and away the most successful of the Magnificent Seven in developing its own AI technology. Google Gemini has been steadily absorbing market share in the enterprise large language model (LLM) market since 2023. Back in 2023, OpenAI, the company behind ChatGPT, had a 50% share in that market. Today, its share has fallen to an estimated 27%, while Google's share has risen from 7% to 21% over the same time frame. And Google is set to overtake ChatGPT this year if last year's trend continues. Meanwhile, Alphabet's Magnificent Seven peer Meta Platforms has seen its share of the enterprise LLM market fall from 16% in 2023 to 8% by the end of 2025. What's more, the current market leader in the enterprise LLM space, Anthropic, has an estimated 40% market share, and it will be expanding its use of Alphabet's hardware moving forward. I'll also note that another Magnificent Seven peer, Apple, partnered with Alphabet earlier this year to use Google Gemini's model to develop its own AI products. So, Alphabet is already beating one of its peers in AI software and has another one of the Magnificent Seven reliant on its software for its own AI. Now, on to how it's dealing with the others. ExpandNASDAQ: GOOGAlphabetToday's Change(-0.21%) $-0.67Current Price$315.70Key Data PointsMarket Cap$3.8TDay's Range$314.56 - $319.4352wk Range$148.40 - $350.15Volume292KAvg Vol22MGross Margin59.68%Dividend Yield0.27% Everything lines up Alphabet's Tensor Processing Unit (TPU), co-developed with Broadcom, represents a serious competitor to Magnificent Seven peer Nvidia's graphics processing unit (GPU). Note that all the other Magnificent Seven stocks use Nvidia hardware to run their AI to some degree, including Amazon and Microsoft, which both use Nvidia GPUs extensively. While they are stuck buying all their hardware from Nvidia, Alphabet is shifting toward using its own, and some other AI companies have begun using the TPU as well. Anthropic is planning to spend tens of billions of dollars this year to add 1 gigawatt of TPU chips to its computational capacity. So, with the exception of Tesla and Netflix, Alphabet either has a competitor to each Magnificent Seven company's AI product (be it hardware or software), or the company is using Google AI for its own products, like Apple does. Google has basically set itself up as the kingpin of the AI industry. And unlike AI start-ups like Anthropic or OpenAI, it has plenty of other revenue streams aside from AI, and it's been a long time since Alphabet has been entirely dependent on investor dollars, so a drop in its stock price doesn't hurt the company. For 2025, Alphabet saw its revenue climb 15% over 2024 to exceed $400 billion for the first time. The company also saw its diluted earnings per share (EPS) shoot up 34% over the same time frame. Alphabet also runs a net profit margin of 32.8%, and it has a very healthy debt-to-equity ratio of 0.14. That all makes Alphabet the standout stock among the Magnificent Seven as far as AI goes. Read NextApr 11, 2026 •By Lee SamahaAlphabet vs. Oracle: Here's What the Debt Market Is SayingApr 11, 2026 •By Jennifer SaibilArtifical Intelligence (AI) Stocks Are Rising on the News of an Iran War Ceasefire. Here Are 3 Great Ones to Pick Up Now.Apr 11, 2026 •By James HiresThis Is the Smartest Artificial Intelligence (AI) Stock to Buy With $500 Right NowApr 11, 2026 •By Harsh ChauhanThe Smartest Growth Stocks to Invest $1,000 in As Investors Rotate Out of TechApr 11, 2026 •By Stefon Walters2 AI Stocks I'd Buy Before Sandisk -- Even After Its Stock Has Surged More Than 2,200% in the Past YearApr 10, 2026 •By Lawrence NgaPreparing for the Next Market Crash?

This Is One Stock You'll Want On Your Watchlist.About the AuthorJames Hires is a contributing analyst at The Motley Fool covering the technology, energy, and mining industries. He is also a contributing analyst at SeekingAlpha. Prior to The Motley Fool, James spend six years ghostwriting at The Oxford Club, a leading financial newsletter in his hometown of Baltimore, Maryland. He holds a bachelors in history from Towson University and enjoys covering companies with historical or cultural significance.TMFJamesHiresX@moneyguyjimStocks MentionedAlphabetNASDAQ: GOOG$315.72(-0.20%)-$0.65AlphabetNASDAQ: GOOGL$317.18(-0.41%)-$1.31Meta PlatformsNASDAQ: META$629.75(+0.22%)+$1.36NetflixNASDAQ: NFLX$103.03(+0.96%)+$0.98MicrosoftNASDAQ: MSFT$370.82(-0.60%)-$2.25AppleNASDAQ: AAPL$260.48(-0.00%)-$0.01TeslaNASDAQ: TSLA$348.76(+0.91%)+$3.14AmazonNASDAQ: AMZN$238.43(+2.05%)+$4.78NvidiaNASDAQ: NVDA$188.67(+2.59%)+$4.76BroadcomNASDAQ: AVGO$371.54(+4.69%)+$16.63*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.