Key Points

Apple and Tesla trade at high valuations while expanding at a modest pace.
The leading AI companies are investing heavily in new data centers.
Nvidia is generating substantial profits from this infrastructure build-out.
10 stocks we like better than Nvidia ›

The Magnificent Seven represents a collection of the world's largest firms by market value. Their performance has defined recent market trends, yet not every member looks equally promising at present. The group includes:

Nvidia (NASDAQ: NVDA)
Apple (NASDAQ: AAPL)
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL)
Microsoft (NASDAQ: MSFT)
Amazon (NASDAQ: AMZN)
Meta Platforms (NASDAQ: META)
Tesla (NASDAQ: TSLA)

Out of these seven names, I favor five. Which ones stand out as attractive and which do not? Here is the breakdown.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »

Image source: Getty Images.

Two stocks that I'm passing on

Apple and Tesla are the two I am avoiding. Valuation is the core issue. Both rank among the priciest in the group, and the premiums do not appear justified.

Data by YCharts.

Tesla commands a lofty price because investors treat it as an AI, robotics, and energy play even though auto sales still drive nearly all revenue. Setting Tesla aside makes Apple's own high valuation clearer.

Data by YCharts.

Apple faces no major business obstacles and is not expanding rapidly, leaving it simply expensive. Rising costs for memory chips driven by AI demand could squeeze margins further and push the multiple higher.

These two names are not compelling at current levels, while the remaining five offer better value.

These five stocks remain strong buys now

Nvidia, Alphabet, Amazon, Microsoft, and Meta Platforms stand out as attractive. They also carry lower valuations and show stronger revenue growth than the two I am avoiding. Nvidia's remarkable 85 percent year-over-year increase distorts the comparison, so I have excluded it from the chart, yet its growth rate leads the pack.

Data by YCharts.

Meta follows with the next strongest pace, then Alphabet, Microsoft, and Amazon, which edges past Apple. Amazon's trajectory could quicken as its large cloud investments begin to pay off. CEO Andy Jassy has noted that clients are ready to use the roughly $200 billion in added capacity, setting the stage for faster expansion. Microsoft and Alphabet are likewise pouring resources into AI infrastructure, which should lift their growth rates in coming years.

Meta lacks a cloud unit but its advertising business is advancing at a steady 33 percent rate. Speculation about a possible cloud launch could add another growth avenue.

With the four AI leaders committing large sums to expand capacity, Nvidia stands to gain the most. Its GPUs power data-center workloads, and surging demand has driven rapid results. Last quarter Nvidia reported 85 percent year-over-year growth, and analysts expect nearly 100 percent in the current period. The company sees further upside ahead.

The AI leaders plan to spend about $650 billion on data-center projects this year. Nvidia forecasts the total will exceed $1 trillion next year. If that projection holds, Nvidia could deliver the largest gains among the seven, making it a clear purchase today.

Should you buy stock in Nvidia right now?

Before you buy stock in Nvidia, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $371,842!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,244,783!*

Now, it’s worth noting Stock Advisor’s total average return is 900% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of July 19, 2026.

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.