My Top 2 Mega-Cap Stocks to Buy After Microsoft's Latest Pullback

By Will Healy – Mar 15, 2026 at 11:05AM ESTKey PointsGoogle parent Alphabet has reasserted itself in the AI race.Minor headwinds have taken Amazon's stock to a surprisingly low valuation.So far in 2026, Microsoft (MSFT 1.57%) is the worst-performing stock in the "Magnificent Seven." Slower growth in its cloud platform Azure and the staggering costs to stay competitive in the AI race have pressured the stock amid a relatively high valuation. Fortunately, this does not mean megacap stocks are in trouble, and under current conditions, these two tech stocks are arguably worth investor consideration. Image source: Getty Images. 1. Alphabet Alphabet (GOOGL 0.42%) (GOOG 0.56%) might be a surprise pick, considering it's a competitor of Microsoft in the cloud and is also investing heavily in AI infrastructure. The Google parent spent $91 billion on capital expenditures (capex) last year and pledged to spend $175 billion to $185 billion this year. However, the difference with Microsoft is that investors have seen a more obvious payoff. Alphabet's Google Gemini AI engine was a later entry in this area, but it has made huge competitive strides, and some users prefer it to ChatGPT. Moreover, Google Cloud continues to outpace the growth rate of its massive digital ad platform, implying a heavier reliance on AI. Additionally, many investors expect Alphabet's autonomous driving company Waymo to be a major revenue driver in the coming years, further boosting its reputation. ExpandNASDAQ: GOOGLAlphabetToday's Change(-0.42%) $-1.28Current Price$302.27Key Data PointsMarket Cap$3.7TDay's Range$300.45 - $307.8252wk Range$140.53 - $349.00Volume995KAvg Vol33MGross Margin59.68%Dividend Yield0.28% Amid some investor skepticism about AI, the stock has delivered a flat performance for the year. Still, its P/E ratio of 29 closely approximates the S&P 500 average, and given its growth prospects, that is probably a low enough valuation to continue attracting investor interest. 2.

Amazon Like Microsoft, investors have become leery of Amazon (AMZN 0.87%) due to its massive capex allocations. The company pledged $200 billion in capex spending for 2026 after spending almost $132 billion the previous year. Additionally, Amazon needs fuel and electricity for both its logistics and delivery networks. That means higher energy costs may weigh more on it than on its competitors. 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% Nonetheless, investors have many reasons to believe the company's headwinds are short term. The primary growth and profit driver for Amazon, Amazon Web Services, has experienced more rapid growth over the last couple of quarters. That indicates that the company's massive capex spending may soon begin to pay off. Furthermore, Amazon's e-commerce segments also capitalize on AI in ways ranging from product selections to a more efficient supply chain. Those segments also include enterprises that rely partially on AI, such as third-party seller services, subscriptions, and digital advertising, which typically report double-digit revenue growth. Moreover, the company's stock trades at a 30 P/E ratio. Until recently, Amazon routinely maintained an earnings multiple above 50, and buying the stock at lower multiples has always paid off in the past. Considering that factor and the signs that the AI investments are paying off for the company, now may be an excellent time to add shares.Read NextNov 23, 2025 •By Daniel SparksNetflix vs. Alphabet: Which Growth Stock Is a Better Buy?Jul 27, 2025 •By James BrumleyOnly 34% of Americans Feel On Track for Retirement. Here Are 3 Stocks to Buy Now and Hold for Decades.Jun 19, 2025 •By Anders Bylund3 Growth Stocks to Buy and Forget AboutMar 28, 2025 •By Billy DubersteinWhy Digital Ad Giants Alphabet, Meta Platforms, and Netflix Plunged TodayMar 20, 2025 •By Keith Speights3 Nasdaq Stocks Down 20% or More That You'll Regret Not Buying on the DipFeb 2, 2025 •By James BrumleyPrediction: 3 Stocks That'll Be Worth More Than Amazon 10 Years From NowAbout the AuthorWill Healy is a contributing Motley Fool stock market analyst covering technology and consumer goods industries.

Before The Motley Fool, Will was a freelance writer covering stocks and personal finance for MSN Money, Yahoo! Finance, and Nasdaq. Earlier in his career, he was an expert in geographic information systems, applying spatial and IT skills to perform RF and demographic analysis in the telecom industry. He holds a bachelor’s degree in journalism from Texas A&M University and an MBA in finance and strategy from the University of Texas at Dallas.TMFWillHealyX@HealyWritingStocks MentionedAlphabetNASDAQ: GOOGL$302.27(-0.42%)-$1.28MicrosoftNASDAQ: MSFT$395.54(-1.57%)-$6.32AmazonNASDAQ: AMZN$207.70(-0.87%)-$1.83AlphabetNASDAQ: GOOG$301.52(-0.56%)-$1.69*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.