Lloyd Walmsley Recommends Top ‘Magnificent 7’ Stocks: Alphabet and Amazon
The stock market continues its upward trend as we approach the fourth quarter, with the S&P 500 and NASDAQ showing significant year-to-date gains. According to Mizuho analyst Lloyd Walmsley, renowned for his expertise, technology stocks remain a focal point, particularly those where artificial intelligence (AI) is revolutionizing business models.
Lloyd Walmsley’s Insights on Investable Stocks
Walmsley is a top analyst, rated in the elite 1% on TipRanks. He primarily researches sectors such as online advertising, eCommerce, and cloud services. His bullish outlook is mainly driven by themes surrounding AI, predicting substantial gains for businesses that embrace this technology.
Top Stock Picks: Alphabet and Amazon
Among the notable stocks, Walmsley highlights Alphabet (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN) as leading choices in the “Magnificent 7,” a group of high-performing stocks. Let’s explore these companies further.
Alphabet Overview
- Market Capitalization: $2.98 trillion
- Q2 Revenue (2025): $96.4 billion (up 13.8% from Q2 2024)
- Digital Advertising Share: 74% of total revenue
- Q2 EPS: $2.31 (up 22% year-over-year)
Alphabet, parent company of Google, dominates in search engines and online video through YouTube. The company’s revenue largely stems from digital advertising, which reflects the increasing efficacy of AI in enhancing user engagement and advertising outcomes.
Recently, Alphabet has been incorporating AI into its services, improving search results’ accuracy. Innovations like AI Overviews and Google Cloud’s AI tools are aimed at maintaining and enhancing its market position in a competitive landscape featuring generative AI alternatives.
Amazon’s Market Strength
- Market Capitalization: $2.34 trillion
- Q2 Revenue (2025): $167.7 billion (up 13% year-over-year)
- AWS Revenue Growth: 17.5% to $30.9 billion
- North American Retail Sales: $137 billion in Q2 2025
Amazon is the unequivocal leader in e-commerce and cloud computing. The company’s extensive logistics network allows for rapid shipping, contributing significantly to its retail success. Amazon also invests heavily in AI, enhancing both their retail capabilities and AWS cloud services.
Key partnerships and advancements, such as with the NBA and various tech initiatives, showcase Amazon’s commitment to leveraging AI technology. Walmsley predicts a bright future for Amazon, particularly for AWS, projecting significant growth fueled by AI applications.
Analyst Ratings
- Alphabet Stock Rating: Outperform with a target price of $295
- Amazon Stock Rating: Outperform with a target price of $300
Walmsley maintains an optimistic stance on both stocks, indicating potential upside in their market performance over the next year. The consensus among analysts mirrors this positive outlook, reinforcing the status of both Alphabet and Amazon as strong investments within the technology sector. By focusing on AI advancements and their implications, investors can position themselves successfully in a dynamic marketplace.
