The S&P 500 index has been on a remarkable journey over the past 16 months, rebounding from its bear market low to reach record levels and confirm a new bull market. And leading the charge are the “Magnificent Seven” – a group of technology stocks that have been driving the market higher.
Some investors may be hesitant to jump in at this point, fearing that these stocks have become too expensive and are due for a pullback. However, there are still opportunities to capitalize on the momentum of these top-performing stocks if they have strong long-term prospects.
Two companies from the Magnificent Seven stand out as compelling buys right now. The first is Nvidia (NASDAQ: NVDA), which has seen its revenue and net income skyrocket thanks to its top-performing AI chip. The upcoming release of Nvidia’s Blackwell architecture and chips promises even more growth potential, making the stock a buy at its current valuation.
The second standout stock is Amazon (NASDAQ: AMZN), which is well-positioned to benefit from the growth in e-commerce, cloud computing, and AI. With its Prime subscription service and leading position in cloud services through AWS, Amazon is leveraging AI to improve operations and drive earnings growth. Trading at a reasonable valuation, Amazon is a stock to buy hand over fist.
Both Nvidia and Amazon offer investors the opportunity to capitalize on the continued growth of the tech sector and the broader market. With strong long-term prospects and compelling growth opportunities, these two stocks are worth considering for investors looking to ride the wave of the Magnificent Seven.
