From NASDAQ.:

Legendary investors Warren Buffett and David Tepper both own a handful of stocks that they believe in. Tepper’s hedge fund, Appaloosa Management, owns positions in Meta Platforms, Microsoft, Amazon, and Nvidia. Buffett, on the other hand, is a big fan of Apple, which makes up nearly 43% of Berkshire Hathaway’s portfolio. Despite their differences, both billionaires own some of the same “Magnificent Seven” stocks.

The generative AI boom has fueled the success of Amazon, Microsoft, and Alphabet. Amazon’s AWS platform has seen an uptick in customer-built AI apps, contributing to its profitability. Microsoft’s 50% increase in shares is partly due to integrating OpenAI’s GPT-4 AI model. Alphabet’s Google Cloud business is thriving alongside AWS and Azure. These stocks have been performing well.

While there are risks associated with Amazon, Alphabet, and Microsoft, the potential for growth outweighs the negatives. Amazon’s expansion into new markets, Alphabet’s Waymo self-driving cars, and Microsoft’s gaming sector make them promising long-term investments. The cloud units of these companies are poised for significant growth, making them attractive stocks to consider.

Investing in Amazon, Alphabet, and Microsoft could be a wise choice for long-term investors, despite potential short-term fluctuations. The Motley Fool’s Stock Advisor service recommends these stocks among its top picks. With a history of outperforming the S&P 500, this service provides insights and recommendations for building a successful portfolio. Consider these stocks for long-term growth potential.

Disclaimer: John Mackey, Randi Zuckerberg, and Suzanne Frey are associated with The Motley Fool. Author Keith Speights holds positions in Alphabet, Amazon, Meta Platforms, and Microsoft. The Motley Fool has recommended and has positions in Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. All investments come with risks, do thorough research before making any investment decisions.



Read more at NASDAQ.: Here Are the Only “Magnificent Seven” Stocks Billionaires Warren Buffett and David Tepper Both Own