Investing

3 Magnificent Seven Stocks To Load Up on with the Nasdaq Composite in a Correction

Vandita Jadeja

Published: April 16, 2025 9:59 am

The temporary tariff pause has had a positive impact on the market, but investors must remember that this is not going to last long. The pause is temporary, and once the tariffs go into effect, we could see another market correction. The current market sell-off has caused multiple stocks to drop by double-digits, and this is a buying opportunity. The Nasdaq is down 12.75% year-to-date and 5.5% in the past month.

The Magnificent Seven consists of the top technology companies that have generated impressive returns for investors in the past. If you have been waiting for the right time to scoop the Magnificent Seven, here’s your opportunity to bag them at the right price. Most of these stocks will return to their magnificence in the coming years. Let’s dive into the three magnificent seven stocks to buy amid the Nasdaq correction. 

Microsoft Corporation 

Tech giant Microsoft Corporation (Nasdaq: MSFT) has become a household name today. The company made timely investments in AI and has integrated it across its offerings. This investment is already paying off. For the recent quarter, Microsoft saw a 19% jump in cloud revenue which was driven by a 21% jump in Azure sales. 

AI has expanded the cloud’s value and is estimated to keep growing at a massive pace over the next few years. It reported revenue of $69.6 billion in the recent quarter. Microsoft is a compelling stock to buy at the current level. It is down from the highs of $468 and is trading for $385 today. The stock has lost 7% value year-to-date and has been moving downhill since January. 

Microsoft is a solid business and it is hard to imagine a world without its products and services. The current dip is due to the overall market sell-off but Microsoft will be able to regain momentum in the coming weeks. Microsoft is on an expansion spree and the past few years have seen the company double its data center capacity. AI will continue to play a huge role in Microsoft’s growth story and it is one stock that will not disappoint you in the years to come. 

It has a forward P/E ratio of 30.54 which is ideal considering the company’s solid history and stable fundamentals. 

Amazon Inc. 

The leading e-commerce giant, Amazon (Nasdaq: AMZN) generates the majority of its profit from the cloud business, Amazon Web Services (AWS), and advertising. One of the fastest-growing segments of the company, AWS saw a 19% jump in revenue in the fourth quarter and this segment is set to keep growing in the months to come. As the largest cloud services provider, Amazon is set to keep expanding, no matter how the economy moves. 

The company intends to spend $100 billion for building AI infrastructure in 2025 in order to meet the growing demand. On the other hand, its e-commerce business is steadily expanding and Amazon has integrated AI to reduce costs and help buyers find more products easily. Investors are concerned about the impact of tariffs on Amazon but consumers could turn to Amazon in case the economy is in trouble because it offers low-cost goods to choose from. 

The global e-commerce industry is massive and Amazon has the ability to expand and make the most of the available opportunity. The stock is down 18.45% year-to-date and is exchanging hands for $179 as of writing. It is down from the 52-week high of $242 and has lost 8.25% in the past month. 

As an industry leader, I believe Amazon will bounce back as the market sentiment improves and the quarterly results could give the stock a boost. This is one stock to load up on while it is down. 

Alphabet Inc. 

Another magnificent seven, Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL) is one of the top cloud computing companies with a solid global presence. The company generates the majority of its revenue from the Google Cloud unit which saw a 30% revenue jump in the recent quarter. Alphabet is making the most from consumers building their own AI applications and has also developed an AI chip that is aimed at reducing cost and inference time.

The company saw a 31% jump in the operating income for the fourth quarter and reported a record-breaking 14% revenue growth for 2024. The company is expected to continue delivering strong revenue numbers and cash flow in the coming quarters. One solid reason to buy Alphabet stock is that it remains shielded from the tariffs. Since the company generates the majority of its revenue through digital advertising, it doesn’t have to worry about the tariffs on imported goods. 

Besides the cloud business, Alphabet is known as a digital juggernaut with Google search as its biggest platform in terms of revenue. It is hard to imagine life without Google search and the company is making the most of its dominating position. Its streaming platform, YouTube is also a strong revenue generator and has shown tremendous growth over the years. The company has the potential to expand revenue through new ad formats using AI. 

Alphabet stock is down 16.76% year-to-date and is exchanging hands for $158. It has lost significant value since February and is trading much lower than the 52-week high of $208. The stock has a forward P/E of 19.3, making it a solid buy.