Top 7 Mag Stocks for AI Investment in 2025

Published Date : 17/06/2025 

The Magnificent Seven stocks, including Alphabet, Microsoft, and Nvidia, have shown strong returns and AI exposure, making them top picks for investors looking to capitalize on artificial intelligence and machine learning trends. 

After rallying hard for years, the Magnificent Seven stocks experienced a significant pullback in early 2025. Investors rotated out of risk-on investments, such as the high-priced Mag Seven, and into risk-off investments like value stocks. However, the group has staged a remarkable comeback in the past few weeks. As of June 10, the Magnificent Seven stocks as a group have returned 33% since the market hit its 2025 low in early April. In comparison, the Morningstar US Market Index, which represents the broad market, was up 22% during the same period.

The Magnificent Seven are a group of leading US technology and tech-related companies with substantial market capitalizations. These companies have driven a significant portion of the stock market’s performance over the past decade. The Mag Seven stocks include:

• Alphabet (GOOGL)

• Amazon.com (AMZN)

• Apple (AAPL)

• Meta Platforms (META)

• Microsoft (MSFT)

• Nvidia (NVDA)

• Tesla (TSLA)

These companies are known for their innovation, financial stability, and global reach. As a result, they are considered excellent stocks for long-term growth, especially in areas like artificial intelligence and machine learning.

To determine which of the Magnificent Seven companies provide the most exposure to AI, Morningstar’s analysts score companies on a scale of 0 to 4 across various investing themes, including AI and machine learning. The scoring criteria include:

• The percentage of companywide revenue expected to be linked to the theme five years into the future.

• Whether the company’s exposure to the theme drives a net profit increase over the next five years.

• The role the company plays in the supply chain for the thematic good/service in question. Producers can earn higher scores than suppliers, while downstream users are not eligible.

Here’s how Morningstar’s analysts have scored each company in the Magnificent Seven for the AI and machine learning theme:

Magnificent 7 Stock | Artificial Intelligence and Machine Learning Theme Score | Morningstar Rating for Stocks (as of June 10, 2025)

--- | --- | ---

Alphabet (GOOGL) | 3 | 4 stars

Amazon.com (AMZN) | 2 | 4 stars

Apple (AAPL) | 1 | 3 stars

Meta Platforms (META) | 2 | 3 stars

Microsoft (MSFT) | 3 | 3 stars

Nvidia (NVDA) | 3 | 3 stars

Tesla (TSLA) | 1 | 2 stars

Alphabet, Microsoft, and Nvidia are the companies in the Mag Seven with the most exposure to the AI investing theme. Apple and Tesla, on the other hand, have the least exposure to the theme.

For investors looking to buy one of the stocks in the Magnificent Seven for AI investing exposure, Alphabet is the stock to buy. Not only does the company provide good exposure to the AI theme, but Alphabet’s stock is trading at 4-star levels, indicating that it looks undervalued according to Morningstar. 

Frequently Asked Questions (FAQS): 

Q: What are the Magnificent Seven stocks?

A: The Magnificent Seven are a group of leading US technology and tech-related companies with substantial market capitalizations. They include Alphabet (GOOGL), Amazon.com (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA).

Q: How are the Magnificent Seven stocks performing in 2025?

A: As of June 10, 2025, the Magnificent Seven stocks as a group have returned 33% since the market hit its 2025 low in early April. This is a significant comeback after a pullback in early 2025.

Q: Which Magnificent Seven companies have the most exposure to AI?

A: Alphabet, Microsoft, and Nvidia are the companies in the Magnificent Seven with the most exposure to the AI investing theme, according to Morningstar’s scoring system.

Q: What criteria does Morningstar use to score companies on AI exposure?

A: Morningstar’s analysts score companies based on the percentage of companywide revenue expected to be linked to AI, whether the exposure drives a net profit increase, and the role the company plays in the AI supply chain.

Q: Why is Alphabet a good stock to buy for AI investing?

A: Alphabet is a good stock to buy for AI investing because it provides significant exposure to the AI theme and is currently trading at 4-star levels, indicating that it looks undervalued according to Morningstar. 

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