These 2 Magnificent Seven AI Stocks Might Be Offering Investors a Once-in-a-Decade Buying Opportunity Before the New Year.

Core Viewpoint - The Magnificent Seven technology stocks are driving the S&P 500 in the current bull market, largely due to their established businesses and potential in the artificial intelligence (AI) sector, which is expected to enhance earnings and stock performance over time [1]. Group 1: Stock Performance and Valuation - The Magnificent Seven stocks have seen significant price increases, with each advancing in double- or triple-digits over the past three years, leading to higher valuations that may deter some investors from buying [2]. - Concerns about a potential AI bubble have emerged, but recent earnings reports and demand for AI products have not supported this notion, indicating continued growth in the sector [3]. Group 2: Investment Opportunities - Despite high valuations, there are still bargains among the Magnificent Seven, with two stocks identified as offering a unique buying opportunity before the new year due to their lower valuations relative to their AI potential [4]. - Meta Platforms is currently the cheapest among the Magnificent Seven, trading at 26 times forward earnings estimates, and is leveraging AI to enhance advertising effectiveness and drive revenue growth [6][8]. - Alphabet is the second-cheapest, trading at 29 times forward earnings estimates, and is utilizing AI to boost advertising revenue and expand its Google Cloud business, which has seen a 34% increase in revenue [9][10][12].