Prediction: This Magnificent Stock Will Be the Top Performer Across the Next Decade

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As the Magnificent Seven continue to take a breather for 2026 relative to the S&P, up 10% year to date (YTD), and the Nasdaq 100, up 21% YTD, I’m sure many are wondering if it’s time to move on to a new tech leadership group, perhaps one that includes the semiconductor gems and Space Exploration Technologies (NASDAQ:SPCX), the red-hot new stock on the block.

While most momentum investors have moved on, probably to the semis, I still think staying the course with the Mag Seven is a great way to go. If anything, the relative underperformance of the group should make investors even more willing to back up the truck, especially as price-to-earnings (P/E) multiples on some names sink closer to their lowest point in recent memory.

For the Mag Seven, it can be tricky to pick just one name to load up on, especially since the broad basket seems very reasonably valued at these levels. Of course, the hyperscalers, which form close to half of the cohort, are giving investors increased anxiety with their CapEx spending.

Why Alphabet’s my top Mag Seven pick for the next 10 years

Going into 2027, the big question is whether that unease will worsen. CapEx on AI-related efforts is expected to go up. And who knows if ROIs are going to suddenly appear. For Alphabet (NASDAQ:GOOGL), though, I think the company is already deserving of the trust of investors.

Whether it spends more, much more, or considerably less, I think CEO Sundar Pichai is a magnificent leader of a frontier AI gem that’s hiding in plain sight as Earth’s second-largest company with a $4.48 trillion market cap.

In the past year, Alphabet stock has been pulling ahead of its Mag Seven rivals, up 119% over the timespan. The most recent dip, I think, could be more of an opportunity, especially as Gemini looks to climb the LLM leaderboards while looking to take more share.

Google’s taking charge in what could be an enterprise AI monetization boom

Apart from Google’s incredibly wide data moat with its users, the firm also looks like it could be an even bigger force in enterprise AI. The company recently partnered with HSBC, a bank, for work on the automation of tasks that could net a $100 million worth of cost savings and new sales. That’s serious monetization, and it might be just the start.

If Google can scale such AI-driven partnerships, perhaps the firm could lead the AI-driven monetization boom, not only as a provider of frontier AI models, but with the expertise and know-how to get the job done. Indeed, a massive chunk of the enterprise might not know how to make the most of AI to effectively monetize.

With the talent aboard, I do think that Google could find itself as an incredible execution partner. What’s most exciting, in my opinion, is how things could scale once agentics improve enough to handle the job itself. Team up with Google, let the agents handle the rest.

Cheaper than the AI IPOs to come

So, as others look to buy up Anthropic or OpenAI IPOs at any cost on opening day, I’d much rather be a buyer of Alphabet shares while they’re trading at 25.6 times forward price-to-earnings (P/E). The company might be spending aggressively, but the key here is that it can afford it. And it can afford to raise the bar in a way that rivals might struggle to, given their relative lack of cash flows.

Whether it’s sheer spending or research talent pool (perhaps there’s nobody better to lead the charge than Google DeepMind’s Demis Hassabis), I wouldn’t bet against Google and Gemini in the AI race.

The bottom line

The stock might pick up where it left off a few months ago, and there are many drivers under the hood to look forward to in the second half. Add TPU innovation (that’s a secret weapon for driving down costs) and its data moat with Search and Android, and it almost seems unfair for the frontier labs to have to compete against Google in this AI race.

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