JPMorgan's Top Picks: Apple and Amazon Set to Dominate Q2 Earnings

JPMorgan has picked Apple and Amazon as the top "Magnificent 7" stocks to buy ahead of earnings. Both companies have solid business models, a strong lineup of products, and deep pockets. Apple, with a market cap of $3.16 trillion, offers services like streaming music and TV, cloud computing, online games, and online payment services. Amazon's AI technology and strong customer base are expected to drive growth. Analysts predict a better outlook for both companies, with Apple's AI system, Apple Intelligence, set to enhance user experience.

As the tech sector gears up for its quarterly earnings reports, JPMorgan has highlighted Apple and Amazon as the top "Magnificent 7" stocks to buy, citing their strong business models and promising growth prospects. Both companies are expected to deliver robust financial performances, with analysts predicting a better outlook for their respective sectors.

Apple, with a market cap of $3.16 trillion, offers a diverse range of services including streaming music and TV, cloud computing, online games, and online payment services. The company's AI system, Apple Intelligence, is set to enhance user experience and drive growth, according to analysts. Despite facing challenges such as tariffs and legal hurdles, Apple has shown resilience in its stock performance [2].

Amazon, on the other hand, is poised to benefit from its strong customer base and AI technology. The company's cloud business, Amazon Web Services (AWS), is a crucial profit-driver, accounting for 17% of total revenue but 58% of operating income last year [1]. Analysts are optimistic about AWS's growth, with expectations for 17% sales growth in Q2, driven by increasing demand for AI and agentic workloads [1].

Both companies are expected to report earnings in the coming days, with Apple set to release its third-quarter results on Thursday and Amazon to publish its second-quarter results late on the same day. Investors will be closely watching these reports for signs of growth and profitability, particularly in light of the ongoing trade uncertainties and the impact of tariffs on consumer spending [1][2].

References:
[1] https://www.investors.com/news/technology/amazon-stock-amzn-news-q2-preview/
[2] https://www.cnbc.com/2025/07/31/what-will-it-take-for-apple-to-get-back-in-wall-streets-favor-here-are-3-things.html