From Nasdaq: 2025-04-15 05:15:00

The Nasdaq-100 index includes the “Magnificent Seven” stocks with a combined value of $14.7 trillion. Each stock, like Apple and Microsoft, has a history of outperforming the market. President Trump’s tariffs announcement caused a 23% drop in the Nasdaq-100, presenting a buying opportunity for stocks like Nvidia and Alphabet.

Nvidia leads in advanced GPUs for AI development, with models like H100 dominating the market. The shift to reasoning models requires 100 times more computing power, leading Nvidia to upgrade its architecture for faster AI inference. The data center business saw a 114% revenue increase, hinting at significant growth potential in AI infrastructure.

Alphabet, parent company of Google, utilizes valuable data for powerful AI models, with Gemini 2.5 Pro outperforming competitors. AI Overviews in Google Search streamline user experience and monetize well. Google Cloud platform offers AI solutions for businesses, driving significant computing capacity growth. Alphabet stock, trading at a P/E ratio of 19.5, is the cheapest among the Magnificent Seven.

Investing in Nvidia or Alphabet presents long-term growth opportunities, with potential returns exceeding the market average. Both companies are positioned to benefit from the growing demand for AI technology and infrastructure. Despite short-term uncertainties like trade tensions, the leadership in AI development makes them attractive investment choices.



Read more at Nasdaq: Nasdaq Bear Market: 2 “Magnificent Seven” Stocks Down More Than 20% You’ll Wish You’d Bought on the Dip