3 Cheap "Magnificent Seven" Stocks to Load Up On

The "Magnificent Seven" group of stocks hasn't really been known for being called cheap. This group includes some big tech high-flyers that led the market over the past few years but have gotten slammed this year. They are:

1. Apple
   
2. Microsoft
   
3. Nvidia (NASDAQ: NVDA)
4. Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL)
5. Amazon
   
6. Meta Platforms (NASDAQ: META)
7. Tesla
   

All seven of these stocks are off their all-time highs alongside the market, amid uncertainty caused by the Trump administration's trade policies. But only a few of these stocks have tumbled to price points where the stocks can actually be considered cheap. The three that I think fit this bill are Nvidia, Alphabet, and Meta Platforms.

With each of these stocks more attractively price today, I think right now represents an excellent time to buy some shares at a discount. Here's why.

Nvidia

Nvidia has been an absolute rocket ship over the past few years, but that ship has slowed in 2025. Nvidia's graphics processing units (GPUs) are the best in class and have been heavily used in the AI race.

GPUs can process multiple calculations in parallel, an effect that can be further amplified by connecting hundreds of GPUs in clusters. With the combined computing power, these data centers can train and run AI models, but investors fear that the gravy train may be slowing.

Investors are worried about how a trade war might affect data center spending, which would harm Nvidia if it dropped. However, that has largely been proved false, at least so far.

Microsoft said that for its fiscal 2026 (ending July 2026), capital expenditure plans remain unchanged, and it is making investments in data centers to capture the cloud and AI opportunities. Alphabet also echoed this sentiment, so it isn't planning on changing capital expenditure plans, either.

Despite the prevailing notion that Nvidia won't be successfully challenged, the stock remains at a far lower valuation than is historically normal.

NVDA PE Ratio (Forward) data by YCharts; PE = price to earnngs.

At less than 25 times forward earnings, Nvidia's stock looks like a bargain here because it's still expected to put up strong growth after this year. With that valuation hovering around where the S&P 500 is trading (at 20.5 times forward earnings), I think that's a compelling enough value to take a position in the stock.

Alphabet and Meta Platforms

Along the same lines as Nvidia, investors are worried about how a trade war could affect the advertising markets. Ad revenue is the first expense to get slashed when an economic downturn or recession is coming, and with both of these companies generating a massive amount of revenue from ads, it could spell trouble for these two.

However, long-term investors can take solace in the fact that advertising revenue comes back once the economy improves. With the market already pricing in a downturn in both of these stocks, today's price could be a great price to pay for these two ad players.

GOOGL PE Ratio (Forward) data by YCharts.

At less than 17 times forward earnings, Alphabet stock is dirt cheap. Another factor looming over it are two court cases that ruled the company is an illegal monopoly in the search engine and ad marketplace. While this issue is still years away from resolving itself, the market wants no part of the stock in the meantime.

Meta Platforms doesn't have those same impending issues, so it gets a bit more of a premium, but its 22 forward earnings multiple is among the cheapest prices you could pay for it over the past year.

I think all three of these stocks represent compelling values right now, and investors should pounce on them while they are still bargains. However, if the tariff situation improves or the economy proves resilient, they won't stay there for long.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, 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. 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. 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.