The Overlooked Giants: Microsoft and Amazon
The "Magnificent Seven" currently stands as the pinnacle of global market leadership, comprising the world's top-10 largest companies. While all seven have delivered robust investor returns over the last decade, identifying which will lead the future is critical. Although Nvidia is often cited for its AI dominance, it is too large to be overlooked. Similarly, Apple's weak AI strategy and high visibility disqualify it from this specific list. Alphabet has rallied significantly on generative AI successes like Gemini, and Meta Platforms and Tesla are widely recognized as "AI-first" entities through their social media integrations and autonomous vehicle projects.
This leaves Microsoft and Amazon as the two overlooked members of the group that demand a second look from AI investors.
The Cloud Computing Engine
While both companies integrate AI into internal operations, the primary revenue driver is cloud computing. They currently hold first and second place in global market share for this sector. During the fourth quarter, Microsoft Azure's revenue surged 39% year over year. Amazon Web Services (AWS) posted a more modest but significant 24% growth rate, marking its best performance in over three years.
These businesses function as cash cows. Facing insatiable AI demand, both are investing billions into new data centers. Once this infrastructure is operational, the companies will unlock high-margin revenue streams that significantly boost profitability. The Motley Fool research indicates that less than 20% of businesses currently utilize AI, a figure expected to skyrocket in the coming years and drive further cloud demand.
Valuation Opportunity
Beyond growth fundamentals, both stocks are trading at a discount relative to recent levels. Since 2024, they have consistently traded with forward price-to-earnings ratios in the low-30s based on estimates; currently, they offer a decent discount to those figures.
As noted by Keithen Drury, who holds positions in Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla: "Right now is a golden buying opportunity, and investors shouldn't squander it."
A Note on Stock Advisor Recommendations
Before purchasing Amazon stock specifically, investors should note that the Motley Fool Stock Advisor team recently identified 10 best stocks for immediate purchase, excluding Amazon from that specific list. The team highlights historical successes, such as recommending Netflix on December 17, 2004 (where a $1,000 investment would grow to $514,000) and Nvidia on April 15, 2005 (growing to $1,105,029). The Stock Advisor team boasts a total average return of 930%, outperforming the S&P 500's 187%.
*Disclosure: The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla and is short shares of Apple. Keithen Drury holds positions in Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla.*
Original source
The Most Overlooked Artificial Intelligence (AI) Stocks in the "Magnificent Seven" for 2026
Published: Mar 15, 2026
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This article is based on third-party reporting. Budget Nerd does not guarantee completeness or accuracy and is not responsible for external source content.