Motley Fool Backs Alphabet, Meta and Microsoft as Top Mag 7 Picks on $145 Billion AI Spend
Updated
Updated · The Motley Fool · Jun 29
Motley Fool Backs Alphabet, Meta and Microsoft as Top Mag 7 Picks on $145 Billion AI Spend
3 articles · Updated · The Motley Fool · Jun 29
Summary
Alphabet, Meta Platforms and Microsoft were singled out as the strongest Magnificent Seven buys for long-term investors as the AI trade shifts from infrastructure buildout to execution and monetization.
Alphabet’s case rests on operating traction: search revenue rose 19% to $60.4 billion, Google Cloud jumped 63% to $20 billion, and Waymo now logs more than 500,000 paid robotaxi rides a week.
Meta’s appeal centers on ad-driven AI returns despite heavy spending, with 2026 capital expenditures projected at $125 billion to $145 billion after Q1 revenue climbed 33% to $56.3 billion and net income 61% to $26.8 billion.
Microsoft rounds out the list on enterprise lock-in, as quarterly revenue reached a record $82.9 billion, Azure growth accelerated to 40%, and the company still posted a 46% operating margin with $32 billion in net income.
The common screen across all three is platform stickiness, balance-sheet strength and scalable AI monetization rather than speculative exposure alone.