$Meta Platforms, Inc.(META)$ Jim Cramer made a case for revisiting the Magnificent Seven, pointing out that months of underperformance have left several of them too cheap to ignore. His view is that the massive AI investments are starting to turn into real returns.
On Amazon, he thinks AWS, advertising, and international growth could make the heavy AI spending look increasingly profitable over time. Alphabet also stands out to him as undervalued, even with Google Cloud, YouTube, and Waymo all growing. Meta is down about 7% this year, but settling the $18 billion lawsuit removed a major financial overhang, and there's a chance they eventually monetize excess AI capacity.
Microsoft is giving more visibility into Azure while locking in more power for its data centers. Nvidia is up about 22% and trades at roughly 14 times forward earnings, which he considers too cheap for the growth it's putting up. A larger buyback could be another catalyst.
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