2 "Magnificent Seven" Stocks to Buy and Hold for the Rest of the Decade
Amazon and Alphabet are my two favorite "Magnificent Seven" stocks to own for the long term.
Two of the world's largest cloud computing providers, Alphabet (GOOGL +1.30%) and Amazon (AMZN +5.12%), are the Magnificent Seven stocks the author recommends for long-term investment. The two companies share a commonality as major players in AI infrastructure. While Nvidia leads in AI infrastructure development, Alphabet and Amazon are poised to dominate as the market matures.
Both companies are investing heavily in AI infrastructure with strong returns, allowing them to generate significant free cash flow. In a slowing demand scenario, they can cut back on capex, further boosting cash flow. Alphabet's core business, search leader Google, grants it a competitive edge over competitors relying on Nvidia GPUs.
Amazon, as the world's largest e-commerce provider, benefits from strong sales, new areas of growth, and operational efficiencies. Both companies are well-positioned in AI and have multiple avenues for long-term success, making them the author's top Magnificent Seven stock picks.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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