3 "Magnificent Seven" Stocks to Buy Hand Over Fist in November
These companies have different AI strategies, but all three could be massive AI winners over the long run.
In the latest fiscal quarter, Nvidia reported a remarkable 106% year-over-year revenue increase to $96.2 billion, with GAAP earnings per share soaring 128% to $2.46. The company's strong performance has been attributed to its leadership in the GPU market and its growing product portfolio, which has expanded its total addressable market.
Nvidia's CUDA ecosystem, a proprietary software platform, provides high switching costs, further solidifying its position in the market. Despite its past success, Nvidia remains an attractive investment, with the company expected to unveil its third-quarter results in November.
Meta Platforms has also demonstrated promising growth by launching Muse, an AI agent that has garnered significant traction, with over 10 million users in the U.S. and Canada, 25% of whom utilize the service daily. Meta's Muse AI agent, initially free for consumers, could be monetized in the future as a shopping assistant, generating new revenue streams.
The company's advertising business is currently robust, and Meta is investing heavily in AI to enhance its capabilities and potentially justify its substantial expenditures. Additionally, Meta's Muse AI agent for small businesses and more sophisticated models for industry-specific applications (such as law and finance) further bolster its prospects.
Amazon's cloud business, AWS, has experienced its fastest growth rate in 18 quarters, driven by AI. This development is particularly noteworthy, considering Amazon's capacity constraints and the high demand for its services, which has led to a backlog of orders for 2028. Amazon is also developing custom AI chips, which are cost-effective alternatives to those purchased from other firms.
Moreover, AI applications in Amazon's e-commerce division could enhance consumer search capabilities, improve merchant operations, and ultimately increase profitability. The company's wide moat, stemming from strong brand recognition, network effects, and switching costs, further cements its position as an appealing long-term investment.
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