The 3 "Magnificent Seven" Stocks That I'm Buying Now
2026-09-26 15:30
•Keithen Drury •The Motley Fool
••••• •••••• Axe Cap view
Three Magnificent Seven Stocks Worth Watching
Nvidia, Alphabet, and Amazon stand out in AI-led cloud growth with clear growth narratives and valuation potential.
Nvidia’s valuation often scares investors because it’s already massive, but its AI data center business still has room to run. Strong projections of 70% revenue growth in 2027 are baked into some models, but if those numbers hold, the stock could double. Alphabet and Amazon are less flashy but no less important. Google Cloud’s 82% revenue jump shows serious traction, with good profit margins pointing to efficient scaling. Amazon’s AWS growth is decelerating compared to Nvidia but remains a giant cash generator, investing aggressively in 2027 to capture AI demand. For South African investors, these stocks represent exposure to AI’s global infrastructure buildout, but with no direct JSE-listed equivalent, keep an eye on the USD/ZAR exchange rate as dollar strength can affect returns when converting back. Be cautious though: if AI enthusiasm fizzles or capital spending slows due to macro risks, these growth stories will weaken. this is just our opinion and not financial advice
Buy Nvidia for direct AI upside, watch Alphabet and Amazon for steady cloud income streams. Hedge USD/ZAR risk if your portfolio is rand-based.
- NVDA
- GOOG
- AMZN
- USD/ZAR
- AI investment hype fades
- USD strength reduces rand returns
7/10
The author recommends three Magnificent Seven stocks as the best buys: Nvidia, Alphabet, and Amazon. Nvidia is highlighted as undervalued despite its $5.4 trillion market cap, with potential to double by early 2028 based on expected 70% revenue growth driven by AI data center spending. Alphabet and Amazon are positioned to benefit from their leading cloud computing platforms (Google Cloud and AWS), with significant capital expenditures in 2027 expected to drive recurring revenue streams from AI clients.
Our take is based on reporting first published by The Motley Fool.