Top 5 "Magnificent Seven" Stocks to Buy in 2025: A Wall Street Analyst's Picks
Saturday, Jan 11, 2025 6:10 pm ET
AAPL --
AMZN --
GOOG --
META --
MSFT --
As we approach the new year, investors are eager to identify the best stocks to add to their portfolios. One Wall Street analyst has shared their top picks among the so-called "Magnificent Seven" stocks, which have consistently outperformed the broader market. These stocks, which include Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla, are expected to continue their strong performance in 2025. Here are the top 5 stocks to consider, based on the analyst's recommendations:
1. Alphabet (GOOGL) - The search giant is expected to lead the Magnificent Seven in 2025, despite facing antitrust concerns and competition from AI-powered search engines. Alphabet's strong ad network and user base should help it maintain its dominance, while the appeal process for its antitrust case will likely drag on. Additionally, Alphabet's innovation in AI chips and cloud computing should drive growth.
2. Nvidia (NVDA) - The semiconductor leader continues to benefit from strong demand for its GPUs, particularly in AI and data center applications. Nvidia's new Blackwell GPU architecture is expected to further boost the company's performance in 2025. With a $4 trillion valuation within reach, investors may want to consider scooping up shares of Nvidia now.
3. Microsoft (MSFT) - The software giant is a safe bet for AI exposure, with its strong position in cloud computing and its partnership with OpenAI, the developer of ChatGPT. Microsoft's agentic AI virtual assistant, CoPilot, is used by almost 70% of the Fortune 500. With a forward P/E multiple of just 21.9, Microsoft is a bargain compared to the broader market.
4. Amazon (AMZN) - The e-commerce giant continues to dominate its industry, with strong growth in its cloud computing and advertising businesses. Amazon's AI initiatives, such as its Amazon Go stores and delivery drones, are expected to drive further growth in 2025. Despite its slower earnings growth compared to its peers, Amazon's consistent performance and strong fundamentals make it a solid choice for investors.
5. Tesla (TSLA) - The electric vehicle maker is expected to benefit from the incoming Trump administration's potential fast-tracking of its autonomous driving and robotaxi plans. Tesla's strong rebound in 2024, following a slow start to the year, demonstrates the company's resilience and growth potential. With a forward P/E multiple of around 50, Tesla is the most expensive stock on this list, but its strong brand and innovative products make it a compelling choice for investors.

Investors should keep in mind that these stocks are already highly valued, and their strong performance may not continue indefinitely. However, the analyst's recommendations are based on the companies' strong fundamentals, AI integration, and growth potential. By diversifying their portfolios with these top 5 Magnificent Seven stocks, investors can position themselves for success in 2025.
In conclusion, the top 5 "Magnificent Seven" stocks to buy in 2025, according to one Wall Street analyst, are Alphabet, Nvidia, Microsoft, Amazon, and Tesla. These stocks' strong fundamentals, AI integration, and growth potential make them compelling choices for investors looking to outperform the broader market in the coming year. However, investors should remain vigilant and monitor these stocks' performance, as market conditions and competitive dynamics can change rapidly.