Key Highlights
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Among the Magnificent Seven tech stocks, these AI stocks stand out as the most affordable.
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These established companies are poised for significant growth as the AI market expands in the coming years.
The S&P 500 is showing potential for double-digit annual gains, indicating that the current bull market may still have room to grow. This fall marks the third successive year of this trend. Historical patterns suggest that increases could continue, so it’s wise for investors to look ahead. Companies that have the potential to thrive in the present and future stock market landscape should be a primary focus. Artificial intelligence (AI) stocks are currently leading this bull market, and analysts believe that the AI market could expand from approximately $300 billion now to trillions by early next year.
Considering an investment of $1,000? Analysts have identified their recommendations for the Top 10 stocks to buy now.
Interestingly, despite the surge in AI stocks, a couple of companies remain reasonably priced, and they could be key players in the next market rise. Here’s a closer look.
Meta Platforms
Meta Platforms (NASDAQ:Meta) is currently the most affordable option among the Magnificent Seven tech stocks responsible for the S&P 500’s growth. It trades at about 26 times its future earnings, down from 30 recently, suggesting a fair price—an opportunity for prospective investors.
The company has a strong commitment to AI, positioning itself to leverage technological advancements, especially through its large language model, Llama, which is set to enhance its advertising strategies.
Being a social media giant with platforms like Facebook and Instagram, Meta provides a prime venue for advertisers. Higher ad performance typically translates to increased spending and, in turn, revenue growth.
In addition, Meta benefits from a significant revenue stream that allows for ongoing investments in AI, all while returning value to shareholders. Given its solid long-term investment returns, this could suggest potential wins for the company and its investors in the AI realm, making it a contender for the next bull market.
Alphabet
Alphabet (NASDAQ:GOOG) shares similarities with Meta. Both companies boast well-established and profitable business models that primarily rely on advertising revenue, and their current stock prices remain low.
Alphabet has consistently generated substantial revenue through its dominance in internet search, with Google being the market leader. Recently, the company celebrated its first $100 billion quarter, thanks to its solid advertising platform.
Additionally, Alphabet gains revenue through cloud computing. Google Cloud is thriving and offers various services that include AI solutions.
Like Meta, Alphabet has developed its own LLM, Gemini, which enhances both its internal operations and customer offerings. The company’s stocks currently trade at around 29 times their expected earnings, showing the potential for growth as the AI market expands further in the coming years.
Is it Time to Invest in Meta Platforms?
Before making any decisions about purchasing Meta Platforms stock, keep this in mind:
According to a team of analysts from Motley Fool Stock Advisor, they have pinpointed the Best 10 stocks investors might consider now, and surprisingly, Meta isn’t on that list. The selected stocks are projected to deliver remarkable returns in the near future.
Consider that early investors in Netflix, recommended back in December 2004, would have seen their $1,000 investment balloon to $507,744* today, or Nvidia, which, recommended in April 2005, could have turned that same investment into $1,153,827!*
The important takeaway is that the average return for the Stock Advisor has reached 984%, far surpassing the S&P 500’s performance of 195%. It may be worth exploring the details around their top recommendations.
*Indicates returns as of December 30, 2025.
The opinions shared in this article reflect the author’s views and may not represent those of Nasdaq, Inc.
