The group of top technology companies, known as the “Magnificent Seven,” collectively valued at $15.7 trillion, has been closely followed by investors. These seven companies include Microsoft, Meta Platforms, Nvidia, Apple, Amazon, Alphabet, and Tesla. In 2024, the Magnificent Seven stocks have shown an impressive average return of 40%, outperforming the S&P 500 index by double the percentage.
As Corporate America prepares for a new earnings season, with Microsoft and Meta Platforms set to release their results soon, it may be a strategic move to consider investing in these two prominent companies from the Magnificent Seven group.
1. Microsoft
Microsoft stands to benefit significantly from the AI revolution, having made substantial investments in this sector. The company’s Copilot virtual assistant, powered by OpenAI’s AI models, has been integrated into various Microsoft products, offering a range of capabilities to users. Additionally, Microsoft’s Azure cloud platform continues to experience rapid growth, particularly in AI services, which have contributed significantly to its revenue.
Despite a slight decrease in stock value from its peak, Microsoft remains a strong player in the AI market, making it an attractive investment option. With an upcoming earnings report expected to highlight further advancements in AI, now could be a favorable time to consider investing in Microsoft.
2. Meta Platforms
Meta Platforms has seen a substantial increase in its stock value following a period of cost-cutting measures and improved profitability. The company’s AI initiatives, including the Meta AI virtual assistant and upcoming Business AI tools, show promise for future growth and revenue generation. Despite heavy investments in AI infrastructure, Meta Platforms maintains a relatively low P/E ratio, making it an appealing choice for investors.
Heading into the earnings report, investors can look forward to insights into Meta Platforms’ AI opportunities and growth trajectory, which could further solidify its position in the market.
Should you invest $1,000 in Microsoft right now?
Before making any investment decisions, it’s essential to consider all factors. While Microsoft presents a strong case for AI monetization, investors may also explore other potential opportunities. The Motley Fool Stock Advisor service offers valuable insights and recommendations for investors looking to maximize their returns.
For more information on top stock picks and investment strategies, investors can access the 10 best stocks recommended by The Motley Fool Stock Advisor team. By staying informed and making informed decisions, investors can position themselves for long-term success in the market.
Overall, both Microsoft and Meta Platforms offer compelling opportunities for investors, especially in the AI sector. As these companies continue to innovate and expand their AI capabilities, they remain key players in the technology industry.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
2 “Magnificent Seven” Stocks to Buy Hand Over Fist in October was originally published by The Motley Fool