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Not Apple. Not Microsoft. This "Magnificent Seven" Stock Is My Top Tech Buy for 2027.

Publié par Yahoo Finance · États-Unis il y a 8 h
Image source: The Motley Fool.
Image source: The Motley Fool. · Yahoo Finance

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Many companies are tapping into the artificial intelligence (AI) boom in their own way. Two companies in this sector are already seeing benefits, and it has helped reinforce their status among the "Magnificent Seven" -- seven mega-cap, tech-heavy companies that have driven a huge share of U.S. stock market gains in recent years.

Microsoft (NASDAQ: MSFT) is integrating AI agents into its legacy software and renting out cloud computing capacity through its Azure services. And Apple (NASDAQ: AAPL) recently launched an update to Siri AI to better answer users' questions and debuted new devices that it says are optimized to run AI. I have no doubt that these two Magnificent Seven companies will succeed in the AI era in their own way.

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But if I had to pick a different Magnificent Seven stock to buy for 2027 and beyond, it would have to be Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). Its investments in Google Cloud are already paying off, and its shares look like a bargain right now.

Alphabet stock fell hard recently after the company reported negative free cash flow of $9.1 billion for the third quarter, which ended Sept. 30. That was the second consecutive quarter of negative free cash flow, and investors were understandably concerned.

But they also may have missed two important things related to its cash flow. The first was that a substantial portion of the loss resulted from a $5.2 billion one-time fee paid to the European Commission. The second is that management has successfully built out a behemoth of an AI cloud service in Google Cloud, and it could generate significant revenue and earnings for years to come.

Google Cloud revenue surged 103% year over year in the quarter to $30.7 billion, making it…

Google…

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