Key Points
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Nvidia and Alphabet are predicted to lead the “Magnificent Seven” stocks in 2025, with Nvidia showing a 30% gain and Alphabet a 60% increase as of now.
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Strong AI infrastructure spending is anticipated to drive Nvidia’s growth into 2026, while Alphabet’s advancements in custom AI chips offer it a competitive edge.
Nvidia (NASDAQ: NVDA) and Alphabet (NASDAQ: GOOGL) have been identified as the top performers among the “Magnificent Seven” stocks, expected to continue their momentum in 2026. Nvidia’s stock has seen a 30% increase, while Alphabet has surged by 60%. Upcoming hikes in AI infrastructure spending and Nvidia’s strategic market expansions, including gaining U.S. approval to sell its H200 chip in China, are set to fuel strong growth for both companies.
Alphabet has an advantage through its proprietary tensor processing units (TPUs), significantly enhancing its Google Cloud capabilities, with projections estimating it can generate $13 billion in annual revenue for every 500,000 TPUs deployed. As both stocks retain attractive valuations, with forward price-to-earnings ratios of 23 and 27, respectively, Alphabet is forecasted to outperform Nvidia due to its more durable business model and lower reliance on customer capital expenditures going forward.
