The Best Magnificent Seven Stock to Buy Now

The Magnificent Seven tech stocks used to be almost automatic winners. They led the S&P 500 higher in the earlier days of the artificial intelligence (AI) boom as investors aimed to get in on players most likely to benefit from this new technology. And the Magnificent Seven, as well-established tech stocks, also offered investors a certain sense of stability – even though they may face their share of headwinds, they have what it takes to soar over time.

And speaking of headwinds, we’re now in a period that hasn’t been the easiest for these players. Though the earnings backdrop and tech spending remain positive, investors have started to worry about some aspects of the AI story. For example, one concern has been that the spending level may be too high, and the revenue opportunity won’t justify it.

One positive point is that these concerns have left certain Magnificent Seven stocks trading at bargain levels. Let’s check out the best one to buy right now.

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The cheapest of the bunch

This stock trades for only 21x forward earnings estimates, making it the cheapest of the group right now. I’m talking about Meta Platforms (META +0.99%), a company you may know best for its ownership of Facebook, Messenger, WhatsApp, and Instagram.

NVDA PE Ratio (Forward) data by YCharts

Meta is a social media giant, with 3.5 billion people around the globe using at least one of these popular apps every day. But this company also is on the road to becoming an AI powerhouse. And this is something that could significantly boost revenue over time. Here’s how: Meta has designed its own large language model and is building out data centers – moves that allow it to apply AI to its biggest moneymaker, advertising.

Meta’s AI features

Advertisers come to Meta to reach us across the apps we use so much. Meta’s AI, as features increase and improve, should spur us to spend even more time on these apps – and this may prompt advertisers to spend more here. On top of this, Meta is working to supercharge the advertising experience and ad results. All of this may translate into greater ad revenue over time.

This AI research and development also could lead to other products and services in the future, which may result in new revenue streams. So Meta is definitely an AI player to watch. And what I like about Meta is the fact that the company already has built a solid business that generates billions of dollars in revenue annually – enough to support growth and dividend payments to shareholders. All of this makes Meta a bargain today, and the best Magnificent Seven stock to buy now.