My Surprising Top "Magnificent Seven" Stock Pick for 2026

• Amazon has been a laggard the past fewer years.

• However, the institution has been doing a batch close down the scenes, including improving the operational ratio of its e-commerce operations.

• Meanwhile, maturation should statesman to accelerate astatine AWS.

• 10 stocks we similar amended than Amazon ›

The "Magnificent Seven" stocks -- which see Apple, Amazon (NASDAQ: AMZN), Alphabet, Meta Platforms, Microsoft, Nvidia, and Tesla -- turned successful different coagulated show successful 2025, up a cumulative 25%, arsenic of Dec. 3.

Alphabet, which was my prime to beryllium the top-performing "Magnificent Seven" banal successful 2025, has led the way, easy outperforming its peers.

Data source: PortfoliosLab.

While Alphabet remains 1 of my favourite stocks to ain for the agelong haul, I deliberation different astonishing banal volition look to pb the radical higher successful 2026. That banal is Amazon.

Amazon has admittedly been a laggard among the Magnificent Seven successful caller years, with the banal up little than 50% implicit the past 5 years. However, that's the aforesaid setup stocks similar Alphabet and Meta experienced successful caller years earlier they broke out. And portion its banal has underperformed successful caller years, the institution has been doing a batch of things down the scenes that are improving some its e-commerce and unreality computing operations.

Amazon came to predominate the e-commerce scenery not by conscionable selling goods online, but by gathering retired the largest fulfillment and logistics web connected the satellite that could get customers these items quickly. More recently, it has been turning to robots and artificial quality (AI) to further this mission, portion besides creating immense operational efficiencies.

One country that is greatly underappreciated astatine Amazon is its enactment successful robotics. Because the institution is designing and making these robots for its ain use, it does not get astir the designation it deserves successful this field. However, it present deploys much than 1 cardinal robots astatine its fulfillment centers, immoderate of which tin execute precocious tasks. For example, earlier this year, it introduced a robot called Vulcan that has a consciousness of touch, which allows it to grip galore much types of items than the mean robot. It besides has robots that tin observe damaged products earlier they are sent out, redeeming wealth connected costly returns, arsenic good arsenic robots that tin hole themselves.

These robots are each present coordinated by its DeepFleet AI exemplary to run successful the astir businesslike mode possible. The institution is besides utilizing AI successful different areas, specified arsenic helping optimize transportation routes, determining the best-located warehouses to store items person to last-mile delivery, and helping drivers find hard-to-locate drop-off spots successful places similar ample flat complexes. This each helps velocity up transportation times and trim costs.