The “Magnificent Seven” group of stocks has dominated the market for several years now. These thriving tech companies emerged as market leaders over the past decade and have risen to become some of the largest companies in the world. In fact, all of the Magnificent Seven stocks are among the top 10 largest companies in the world. It’s made up of:
Nvidia(NASDAQ: NVDA)
Apple(NASDAQ: AAPL)
Alphabet(NASDAQ: GOOG)(NASDAQ: GOOGL)
Microsoft(NASDAQ: MSFT)
Amazon(NASDAQ: AMZN)
Meta Platforms(NASDAQ: META)
Tesla(NASDAQ: TSLA)
But past performance doesn’t always indicate future performance. These stocks have been long-term winners, but which ones have the best chance to succeed going forward? More importantly, which ones are buy opportunities in March? Let’s take a look.
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To me, Tesla is a hard stock to get a grasp on. The company is doing a lot of exciting things, and its future appears bright if certain actions work out, but the current results aren’t spectacular. I think the best times to buy Tesla stock are when it’s trading significantly off its all-time highs. While it’s down around 18% from that level, that’s similar to the rest of the stocks in this group, so I don’t think now is a great time to load up on shares.
Apple is a company I don’t have a ton of faith in. It has failed to launch meaningful artificial intelligence (AI) products, and most of its revenue is tied to its past efforts. It’s currently reporting a rebound in growth, but that’s because it has had a relatively lackluster past few years to compare to. Apple needs to post a solid year and launch some exciting new products for me to be interested in it again; until then, I’m passing on the stock.
That leaves Nvidia, Alphabet, Microsoft, Amazon, and Meta Platforms as great buys in March, and I think a great case can be made for each.
All five of these stocks are posting strong results and doing exactly what they told investors they’d do. For Nvidia, Microsoft, and Meta, they may be performing just fine as a business, but their stocks have hit some headwinds.
Each of these stocks used to trade for a far higher forward earnings multiple; now they trade for nearly the same price tag as the S&P 500 (SNPINDEX: ^GSPC). The S&P 500’s forward earnings ratio is 21.9, yet all three of these stocks are growing at a much faster pace than the 10% average at which the market typically grows.
These three are all seeing strength in their core businesses, and a market-average valuation seems like a great price to buy these stocks at, as they have the potential to deliver incredible stock price growth when they return to a more typical valuation level.
Two Magnificent Seven stocks that don’t trade at those cheap levels are Amazon and Alphabet. Both of these stocks are sporting premium valuations, with Amazon and Alphabet trading at 27 times forward earnings each. However, each one of them has earned this premium valuation.
Alphabet emerged as a leader in the generative AI realm, and its AI model, Gemini, is becoming one of the most popular to use. Additionally, it’s seeing incredible growth in its cloud computing segment due to the massive demand for its computing capabilities to run AI workloads on.
Amazon is seeing similar demand in its cloud computing platform, Amazon Web Services (AWS). AWS posted its best quarter in over three years during the fourth quarter of 2025 — a sign of growing demand. Furthermore, its custom chip business increased in revenue at a triple-digit pace. This shows Amazon’s AI strategy of being a host rather than a competitor is working, and should lead to impressive growth in this important segment throughout the rest of 2026.
Although Amazon and Alphabet have a premium valuation, they have earned it and will likely maintain it due to their top-notch execution. Microsoft, Meta, and Nvidia are also great buys, and represent a little bit more value than Amazon and Alphabet.
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Keithen Drury has positions in Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
