I have money to invest and this is how I am ranking the Magnificent 7

The Magnificent Seven are under an increasing amount of pressure, with Trump tariff worries going into overdrive. Undoubtedly, the market could use some help from the former basket of market leaders, who are now falling faster than the broad market. Though the magnificence of the Mag Seven continues to be stress-tested, I still think giving […] The post I have money to invest and this is how I am ranking the Magnificent 7 appeared first on 24/7 Wall St..

Mar 7, 2025 - 19:34

I have money to invest and this is how I am ranking the Magnificent 7

The Magnificent Seven are under an increasing amount of pressure, with Trump tariff worries going into overdrive. Undoubtedly, the market could use some help from the former basket of market leaders, who are now falling faster than the broad market.

Key Points

The Mag Seven have been anything but magnificent. But they could be worth buying on the way down.
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Though the magnificence of the Mag Seven continues to be stress-tested, I still think giving up on all seven names could be a bad move, even if recession and stagflation risks rise. If anything, the latest correction could prove more of a buying opportunity as we hear less about AI and more about tariffs in the coming weeks.

Though I’m a fan of the Mag Seven cohort, I find some names are better than others as tech turns lower.

In this piece, I’ll attempt to rank the Mag Seven names. And, remember, the ranking is merely my opinion. So, before you invest in any one of the names, have your own ranking in mind and don’t lose sight of valuation. Starting from last to first, here’s how I’d rank them today:

Nvidia and Tesla

Tied for seventh and sixth, we have Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). Notably, they’ve fallen the most off their all-time highs, now down 26% and 45%, respectively. Though I remain a big fan of their growth profiles, I do think it’s going to be hard to catch the names as they tumble further.

These high-growth names are among the choppiest rides and are expected to amplify any steep downside moves made by markets. Though both names could also come soaring back once stocks bottom out, I do think the hefty 1.76 and 2.51 betas on NVDA and TSLA, respectively, make them wait-and-see types of plays.

Though there’s no shortage of catalysts (Blackwell launch for Nvidia and Cybercab for Tesla), I’d much rather wait for the negative momentum to settle before placing a bet. Of course, it is quite tempting to get TSLA stock at close to 50% off its peak if you can manage the political risk associated with the name.

Microsoft and Meta

Tied for fifth and fourth, we have Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META), which are both down around 15% from their highs. Microsoft continues to run with the AI ball as we move into a year of agents. With a robust Azure cloud business that could bounce back after a recent lukewarm showing, I’d watch the name closely on the way down. Today, the stock trades at 32.0 times trailing price-to-earnings.

Meanwhile, Meta, which is in the process of giving back the melt-up gains enjoyed in January and February, goes for 26.3 times trailing P/E. It’s also an AI innovator you can’t count out of the game. The company’s product chief sees the new LLaMA 4 model as powering its agents. Indeed, an exciting time for the firm as investors fear potential stagflation and its impact on the ad business.

Apple

Apple (NASDAQ:AAPL) has been a relatively safe place to hide amid tariff turbulence in the past week, with shares pretty much flatlining in the past five sessions. Undoubtedly, much of the tariff threats have already been priced in back when shares sank into correction to kick off the new year. Though potential 20% tariffs on China could weigh on Apple, I do think such threats are being offset by Apple’s big $500 billion U.S. spending commitment in four years.

Given such a hefty investment, Apple could be in for some tariff exemptions. Either way, Apple is moving full speed ahead on AI with much of the massive investment going towards AI servers and development on Apple Intelligence.

And while Apple has not explicitly announced plans to “robotic production of iPhones” in the U.S., one has to wonder if the profound concept raised by U.S. Commerce Secretary Howard Lutnick offers a glimpse into the future of the Cupertino-based giant. Either way, Apple is giving investors 500 billion reasons to stick with the name amid market volatility. At 37.4 times trailing P/E, shares don’t look all too expensive.

Alphabet

Alphabet (NASDAQ:GOOG) stock is a fantastic AI play that’s going for cheap. Now at 21.6 times trailing P/E, you’re getting a lot of AI-driven growth for what I view as a value multiple.

Sure, a recession could weigh, but with so many promising drivers and a dirt-cheap multiple, I view the name as one of the best bargains of the Mag Seven.

Even famed value investor Bill Ackman is a holder of shares amid volatility, which, I believe, is more noise than anything to fret over.

Amazon

Finally, Amazon (NASDAQ:AMZN) is my favorite Mag Seven name right now. It’s cheap at 36.3 times trailing P/E, with AI opportunities that are likely being completely ignored by the market right now.

The company’s roll-out of Alexa+ could punch it a huge ticket to the consumer AI and agent boom.With a newly formed agentic AI group, Amazon has punched its ticket to the agent race and could be one of the bigger winners.

Add robotics innovation in the warehouse into the equation and the potential for automated deliver in the distant future and Amazon remains a hyper-grower to stick with for the next decade out.

With shares down over 17%, perhaps it’s time for growth-minded value investors to jump in.

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