"Mega-cap growth stocks have been some of the top performers in the stock market. The Roundhill Magnificent Seven ETF ( BATS:MAGS) contains the seven largest publicly traded corporations, and that fund has regularly outperformed the S&P 500 since its inception. The Magnificent Seven stocks have historically produced higher returns than the broader stock market, and that trend may continue with AI investments. These are some of the mega-cap stocks to buy now that can reward long-term investors."
"Alphabet ( NASDAQ:GOOG) is one of the most compelling mega-cap stocks due to its valuation and long-term growth opportunities. The stock trades at a 30 P/E ratio as its online advertising segment continues to deliver excellent results. More investors have picked up on Google Cloud, which has accelerating growth rates amid the AI frenzy. Cloud revenue increased by 34% year-over-year in Q3, which helped lift overall revenue by 16%."
"However, Alphabet still has additional revenue opportunities that can drive the next stages of growth. Alphabet's self-driving Waymo vehicles are gaining traction and now drive on highways in select cities. It's a key proof-of-concept stage that can turn Alphabet into the winner of the new and emerging autonomous vehicle market. Alphabet is also investing heavily in artificial intelligence, which can lead to additional growth opportunities."
Mega-cap growth stocks, especially the Magnificent Seven, have outperformed the S&P 500 and may continue to benefit from AI investments. The Roundhill Magnificent Seven ETF holds the seven largest publicly traded corporations and has regularly outperformed the S&P 500. Alphabet trades near a 30 P/E, driven by strong online advertising and accelerating Google Cloud growth — cloud revenue rose 34% year-over-year in Q3 and overall revenue grew 16%. Alphabet's Waymo self-driving vehicles are operating on highways in select cities and represent potential autonomous-vehicle upside. Nvidia leads AI chip demand with Q3 FY26 revenue up 62% and net income up 65%.
#mega-cap-growth-stocks #magnificent-seven-etf-mags #alphabet-goog #nvidia-nvda #ai-and-cloud-computing
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