Investors eye Nvidia and Alphabet stocks for buying

Investors looking for long-term gains might consider buying shares of leading companies, often called "Magnificent Seven" stocks, during recent market pulls. These businesses have strong competitive advantages and are expected to benefit from the growing use of artificial intelligence (AI). Here are two notable companies worth investing in now. First is Nvidia, a leader in AI chip technology. The demand for Nvidia's graphic processing units (GPUs) surged, leading to a 114% revenue increase last year, reaching $130 billion. Nvidia is well-positioned to capture a substantial portion of the AI chip market. The company recently received a significant order for its new GPUs, indicating ongoing demand. Nvidia also reported an impressive $60 billion in free cash flow last year, which it is using to support innovation and future growth. The stock is currently down 23% from recent highs, making it an attractive buy. Second is Alphabet, the parent company of Google. Alphabet has consistently outperformed the market and is focusing on AI to enhance its search advertising and cloud services. The company announced a $32 billion deal to acquire cloud security firm Wiz, highlighting its strong cash position and commitment to growth. Alphabet's cloud revenue grew by 30% last year, outpacing its advertising revenue. The stock is down 20% from its peak, making its price-to-earnings ratio favorable for new investors, especially with anticipated earnings growth of 16% per year. Investing in these companies could provide significant returns as they capitalize on AI trends and market opportunities.