If I Could Only Invest In 1 “Magnificent Seven” Stock Over the Next Decade, This Would Be It

Over the last year, investors have turned to the “Magnificent Seven” stocks in search of outsized gains, and for good reason.

Mega-cap tech companies such as Nvidia, Microsoft, Alphabet, and Meta Platforms have all outperformed the S&P 500 and Nasdaq Composite over the last 12 months. Much of these gains can be attributed to a rising interest in artificial intelligence (AI), a market dominated by the Magnificent Seven.

Yet despite the impressive performances of the companies above, I see another member of the Magnificent Seven as a superior choice for long-term investors.

E-commerce and cloud computing giant Amazon (NASDAQ: AMZN) has underperformed the Nasdaq over the last year and has basically generated returns in line with those of the S&P 500.

With shares down roughly 14% over the last month, I think now is a prime opportunity to buy the dip in Amazon.

Let’s dig into how Amazon is quietly disrupting the AI landscape and assess why now looks like a lucrative opportunity to scoop up shares at a dirt-cheap valuation.

Don’t call it a comeback

One of the biggest opportunities surrounding AI is cloud computing. Amazon faces fierce competition in the cloud infrastructure market from Microsoft Azure and Alphabet’s Google Cloud Platform (GCP).

Over the last 18 months or so, Microsoft has swiftly augmented the Azure platform thanks to the company’s $10 billion investment in OpenAI — the developer of ChatGPT. Moreover, Alphabet has done a respectable job of breaking into the cloud realm thanks to a series of acquisitions, including MobiledgeX, Forseeti, Siemplify, and Mandiant.

These moves by Microsoft and Alphabet initially appeared to be taking a toll on Amazon’s cloud revenue growth and its profitability. However, the table below illustrates some newfound encouraging trends from Amazon’s cloud segment, Amazon Web Services (AWS).