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Apple and Tesla have some questions to address.
Meta Platforms and Alphabet should maintain momentum.
Nvidia expects to continue its rapid growth again in the new year.
The "Magnificent Seven" group of stocks is a commonly mentioned name attached to some of the biggest companies in the world. All seven are ranked inside the top 10 by market cap, making them incredibly important. The seven stocks making up the Magnificent Seven are:
These stocks have had a mixed bag in 2025, with some stocks falling and others rocketing higher. But which stocks are the best buys for 2026? I've ranked them in descending order, with some ranging from avoid to strong buys.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Getty Images.
Starting with Apple, it's a stock I wouldn't recommend buying today. While Apple may be the face of consumer electronics, it has lost its innovative touch over the past few years. This has led to poor revenue growth since 2022.
AAPL Revenue (Quarterly YoY Growth) data by YCharts
There isn't a new product or feature coming that will likely turn that trend around, so Apple ranks last in growth potential. Combine that with a fairly expensive stock price (34 times forward earnings), and you have a recipe for a stock to underperform in 2026.
Tesla (NASDAQ: TSLA) has had a rough year. With the EV tax credit ending, Tesla's vehicles don't appear as cheap as they used to. Furthermore, Tesla's margins have slipped because it has chosen to eat some costs instead of passing them on to the consumer. This has allowed revenue growth to continue in the latest quarter, while diluted earnings per share (EPS) have shrunk the whole year.
TSLA EPS Diluted (Quarterly YoY Growth) data by YCharts
This isn't an easy-to-solve trend for Tesla, and it may be smart to avoid it in 2026 as a result.
Although there's only one spot separating Microsoft from Tesla, there is a huge jump in potential performance for 2026. I'd consider Microsoft and every stock above it a buy right now, as 2026 is looking impressive.
Microsoft has delivered strong growth throughout all of 2025, thanks to its investments in OpenAI and its status as a top-tier cloud computing provider. All of the tailwinds that pushed Microsoft's stock higher in 2025 (it's up about 14%) exist in 2026, and the stock should perform around market-average.
Meta Platforms was having a great 2025 until its Q3 earnings. The parent company of social media sites like Facebook and Instagram saw incredible growth, with revenue rising 26% thanks to the implementation of artificial intelligence on those platforms. However, the market was unhappy with Meta's capital expenditure projections.
This caused the stock to tumble, as data center buildout could consume all of its operating cash flows. The market wants to see a bigger return on investment from Meta surrounding this AI spend, and I think some of that could happen in 2026 as Meta's investments drive more time spent on their platforms and increase efficiencies within the company. Meta can return to new highs in 2026, making it a strong stock pick.
Amazon was a poor performer in 2025. Its stock has risen a mere 3%, lagging many on this list. However, it's slated for a great 2026.
Amazon Web Services, its cloud computing business, saw its growth surge to 20% -- a recent high. This bodes well, as AWS holds the biggest share of this important market. Additionally, its ad service division saw 24% growth in Q4 -- an acceleration over prior quarters.
Both of these businesses are crucial to Amazon's success, as they have far greater operating margins than Amazon's core e-commerce business. I think this sets Amazon up well to bounce back in 2026, and it will be a great Magnificent Seven stock to own.
Alphabet's stock has had the best 2025, rising more than 60% so far this year. While it may be difficult to match that growth in 2026, I still think it can be a top performer.
Alphabet has emerged as one of the best AI companies, with its leading generative AI model, Gemini. That wasn't the case heading into 2025, and with Alphabet closing the gap throughout 2025, it could open up a serious lead over the competition in 2026. Furthermore, Alphabet's core business, Google Search, is thriving and no longer has to worry about being broken up for being an illegal monopoly.
Alphabet has addressed a lot of investors' concerns about the future of its company in 2025. This frees the stock up to rise based on Alphabet's business performance in 2026, which could be another strong year.
Last, but certainly not least, is Nvidia. Nvidia has delivered strong growth for multiple years in a row, thanks to being the primary computing supplier for the AI arms race. Its graphics processing units (GPUs) are best in class, and Nvidia has "sold out" of its cloud GPUs due to strong demand.
With AI hyperscalers (including several in the Magnificent Seven) all informing investors to expect record-setting capital expenditures in 2026 on top of already record-breaking figures in 2025, Nvidia is slated to have another fantastic year. Nvidia expects global data center capital expenditures to rise from $600 billion in 2025 to $3 trillion to $4 trillion annually by 2030. If that growth pans out, Nvidia will continue to be the top stock to own in the Magnificent Seen not only in 2026, but several years after that.
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Keithen Drury has positions in Alphabet, Amazon, Meta Platforms, Nvidia, and Tesla. 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.
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