The "Magnificent Seven" stocks to buy now are Nvidia, Microsoft, Apple, Amazon, Alphabet, Meta Platforms, and Tesla. However, Apple and Tesla are to be watched, as Apple's growth has recently returned, and Tesla's revenue has fallen 16% YoY in Q2. The other five stocks look promising, with strong growth and improvements in their advertising businesses. Alphabet's revenue rose 14% YoY, and its diluted earnings per share rose 22%.
The tech sector continues to captivate investors with its robust growth and innovation. Among the top stocks, two stand out: Nvidia and Microsoft. This article explores their recent performance and future prospects, providing insights into why these companies are part of the "Magnificent Seven" stocks to buy now.
Nvidia: Navigating Challenges and Opportunities
Nvidia Corp. (NASDAQ: NVDA), the leading artificial intelligence (AI) chipmaker, has shown remarkable resilience despite facing significant headwinds. The stock has surged 56.6% over the past 90 days, trading near an all-time high above $183 [1]. The company's pivot to U.S. AI infrastructure investments and new chip designs for China has signaled resilience. However, uncertainties surrounding U.S.-China trade relations and potential regulations pose risks.
Nvidia's first-quarter earnings report revealed a substantial write-down of $5.5 billion due to H20 chip export restrictions to China. Despite this, the company's profitability remains robust, with reported price hikes of 10% to 15% on some GPUs to offset tariffs. The AI market's projected growth at a 37% CAGR through 2030 supports Nvidia's $170 billion fiscal 2026 revenue forecast [1].
Microsoft: A Strong Performance Amid Growth
Microsoft Corporation (NASDAQ: MSFT) has maintained a strong performance, with analysts overwhelmingly rating the stock positively. Hartmann Taylor Wealth Management LLC recently acquired 4,025 shares of Microsoft, valued at approximately $1.51 million, making it the firm's 20th largest holding [2]. The company reported a quarterly dividend of $0.83 per share, highlighting its financial stability amidst growth.
Microsoft's quarterly earnings results showed a net margin of 36.15% and a return on equity of 32.44%. Revenue for the quarter was $76.44 billion, beating analysts' consensus estimates by $0.30. The stock has a market capitalization of $3.88 trillion and a PE ratio of 38.27 [2].
The Magnificent Seven: A Closer Look
While Apple and Tesla face recent challenges, Nvidia and Microsoft, along with Amazon, Alphabet, and Meta Platforms, continue to show strong growth and improvements in their advertising businesses. Alphabet's revenue rose 14% YoY, and its diluted earnings per share rose 22%, indicating robust performance in the sector [1].
Conclusion
Nvidia and Microsoft stand out among the "Magnificent Seven" stocks due to their strong performance, resilient growth, and innovative capabilities. Despite facing challenges, these companies are well-positioned to capitalize on the AI and tech sectors' growth. Investors should keep an eye on these stocks for potential long-term gains.
References
[1] 24/7 Wall St. (2025). Nvidia NASDAQ NVDA Stock Price Prediction for 2025: Where Will It Be in 1 Year? [URL](https://247wallst.com/investing/2025/08/06/nvidia-nasdaq-nvda-stock-price-prediction-for-2025-where-will-it-be-in-1-year/)
[2] MarketBeat (2025). Filing: Hartmann Taylor Wealth Management LLC Acquires Shares of Microsoft Corporation (NASDAQ:MSFT) [URL](https://www.marketbeat.com/instant-alerts/filing-hartmann-taylor-wealth-management-llc-acquires-shares-of-4025-microsoft-corporation-nasdaqmsft-2025-08-10/)
Comments
No comments yet