Zacks Investment Ideas feature highlights: Nvidia, Meta Platforms and Microsoft

For Immediate Release

Chicago, IL – July 25, 2025 – Today, Zacks Investment Ideas feature highlights Nvidia NVDA, Meta Platforms META and Microsoft MSFT.

3 Best Magnificent 7 Stocks to Buy Now: NVDA, META, MSFT

The Magnificent Seven stocks have dominated markets in recent years, but as technological and investor preferences shift, so too do the opportunities even among these elite companies. Right now, I think that Nvidia, Meta Platforms and Microsoft stand out as the strongest buys right now.

These three boast the most powerful momentum year-to-date, underpinned by exceptional profit margins and impressive earnings growth forecasts. A couple of them also carry top Zacks Ranks, reflecting positive analyst sentiment and upward revisions.

Perhaps most importantly, Nvidia, Meta, and Microsoft are uniquely positioned to excel during the next phase of the AI boom, making them compelling picks for investors looking for growth in a rapidly evolving market.

Meta Platforms: Stock Jumps on Earnings Upgrades

Meta Platforms is currently the only member of the Magnificent Seven with a Zacks Rank #1 (Strong Buy) rating, underscoring analyst confidence. Over the past two months, analysts have unanimously raised their earnings forecasts, a clear signal of improving expectations. Earnings are projected to grow at a healthy 16.25% annually over the next three to five years, placing Meta among the best growth stories in large-cap tech.

CEO Mark Zuckerberg has been aggressively leaning into artificial intelligence, first by integrating it into Meta’s core ad platform. These AI-driven tools now automate demographic targeting and even design ad creatives, significantly improving ad performance and boosting revenue growth. But Zuckerberg’s ambitions go well beyond advertising: he has publicly set his sights on achieving superintelligence, reportedly offering $1 billion pay packages to attract top AI talent and position Meta at the forefront of the industry’s next big breakthrough.

From a technical perspective, META stock broke out of a consolidation pattern this Thursday morning. If the stock can hold this new level, it could set up a run toward all-time highs in the coming weeks.

Microsoft: Shares Can’t Stop Going Higher

Microsoft has been on an impressive run, climbing steadily since its April lows in what can only be described as a relentless grind higher. Over the past three months, the stock has barely ticked lower, demonstrating persistent institutional accumulation. This kind of price action reflects a deep conviction among investors that Microsoft remains a long-term market leader.

From a fundamental perspective, Microsoft continues to deliver. It is one of only two members of the Magnificent Seven with upward-trending earnings revisions, earning it a Zacks Rank #2 (Buy) rating. Analysts project earnings growth of 14.76% annually over the next three to five years, an extraordinary rate for a company with a market cap approaching $4 trillion.

Microsoft’s Azure cloud computing platform sits at the center of its AI strategy, powering enterprise applications and serving as a backbone for advanced AI workloads. Its close partnership with OpenAI has only strengthened its position, allowing it to integrate cutting-edge generative AI tools into products like Microsoft 365 and Copilot. This combination of cloud dominance and AI leadership keeps Microsoft at the forefront of innovation and continues to justify its relentless climb.

Nvidia: Stock Defies the Bears

Nvidia continues to prove the doubters wrong, week after week. Despite concerns about valuation and competition, the company remains the undisputed leader in AI infrastructure, with its bleeding-edge data center GPUs forming the backbone of the generative AI revolution. As hyperscaler capex climbs to astronomical levels, Nvidia remains the go-to provider, with its hardware so advanced that major data center operators have no viable alternative at scale.

Performance speaks for itself: Nvidia is once again the best-performing stock among the Magnificent Seven in 2025, surging 78% since the April lows and continuing to post market-leading gains year-to-date. This relentless rally reflects investor appetite for exposure to the most critical technology powering the AI boom.

From a technical standpoint, Nvidia shares have once again broken out of a tidy bull flag pattern, signaling strong accumulation and setting the stage for another run at record highs. For traders and long-term investors alike, the setup is compelling: NVDA continues to combine explosive revenue growth, industry dominance, and a chart that shows no signs of losing momentum.

Should Investors Buy Shares in NVDA, MSFT and META?

While all seven of the Magnificent Seven remain leaders in their own right, Nvidia, Microsoft, and Meta Platforms stand out as the most compelling opportunities right now. They combine strong technical momentum, robust earnings growth forecasts, and clear leadership in the AI-driven future of technology.

For investors seeking exposure to the next phase of innovation, and the companies powering it, these three stocks look well-positioned to deliver continued outperformance in the months and years ahead.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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