Key Highlights
The “Magnificent Seven” refers to a notable group of stocks that dominate the market. This lineup includes:
- Nvidia (NASDAQ:NVDA)
- Alphabet (NASDAQ:GOOG), also known as Google
- Apple (NASDAQ:AAPL)
- Microsoft (NASDAQ:MSFT)
- Amazon (NASDAQ:AMZN)
- Meta Platforms (NASDAQ:Meta)
- Tesla (NASDAQ:TSLA)
These companies consistently rank among the top 10 globally. Monitoring their market capitalization can be crucial for investment strategies.
Where should you invest $1,000 right now? Our analysts have shared their insights. Check out the Best 10 stocks to consider. Discover stocks »
Investors are particularly interested in stock splits, as there’s potential for two companies from this group to split their stocks in 2026. That could generate quite a bit of excitement, but which two stocks might be involved? Let’s explore.
Image source: Getty Images.
Stock Splits in the Magnificent Seven
Since 2020, several companies in this group have executed stock splits. Nvidia, Alphabet, Apple, Amazon, and Tesla have all taken this step. However, Meta Platforms and Microsoft have not split their stocks recently.
For Microsoft, the last stock split occurred back in 2003. They had a solid history of splitting stock fairly regularly, and now, with shares nearing $500, there’s speculation about the possibility of reaching that price point in 2026.
Meta Platforms hasn’t done a stock split since its IPO in 2012. Currently priced around $650 per share, it has previously been near $800 before a decline after underwhelming earnings in the previous quarter.
I wouldn’t be entirely shocked if either company announces a stock split in 2026. The buzz around such announcements tends to boost stock prices, but honestly, I think there are more substantial reasons to invest in these companies. I believe each has the potential to be a solid investment from now into 2026.
Microsoft and Meta Platforms: Worth Owning Without Stock Splits
Both Microsoft and Meta Platforms are strong contenders in their fields. Regarding artificial intelligence, the strategies differ. Microsoft is opting for a more neutral approach, pushing towards becoming an advocate for AI without locking customers into a single solution. They’ve teamed up with OpenAI, the creator of ChatGPT, integrating its features across their products, while also offering competitive models within Azure. This allows users some flexibility with Microsoft’s AI tools.
Microsoft has a significant stake in OpenAI’s progress, yet they aren’t solely reliant on one product. This approach has not only given them a robust revenue surge, especially in cloud computing, but Azure has been one of the fastest-growing platforms in that sector. I think this momentum will likely continue in the near future, making it an appealing investment.
Meta Platforms, the parent entity of Facebook and Instagram, primarily generates revenue through advertising and has experienced a notable boost from generative AI. Their revenue has climbed sharply in recent quarters thanks to this.
META revenue (quarterly YoY growth rate) based on data from Y Charts.
That ROI is what many investors seek when it comes to generative AI. However, there are concerns regarding Meta’s spending levels. They’ve communicated forecasts indicating a significant investment in AI, notably in their data centers, predicting expenditures to surpass $100 billion, which gives some investors pause. This has led to some selling pressure on their stock.
Still, I believe that if Meta can continue to showcase solid returns and advancements in AI, particularly with AI glasses, they could rebound nicely by 2026—stock split or not.
Is it Time to Buy Microsoft Stock?
Before you decide to invest in Microsoft, keep a few points in mind:
According to Motley Fool Stock Advisor, our analysts have pinpointed what they consider the Best 10 stocks to consider right now, and Microsoft didn’t make the cut. These other stocks could yield impressive returns in the coming years.
To put things into perspective, consider Netflix: had you invested $1,000 back when it was first recommended on December 17, 2004, you’d now have about $487,089!* Or look at Nvidia: investing $1,000 when it was recommended on April 15, 2005, would now be worth around $1,139,053!*
Just something to think about; the Stock Advisor service has an average return of 970%, far outpacing the S&P 500’s 197%. It’s a compelling argument for joining this community of retail investors.
*Stock Advisor will return on January 14, 2026.
The opinions expressed here do not necessarily represent those of Nasdaq, Inc.
