Ranking the "Magnificent 7" Stocks by Free-Cash-Flow Yield

Published July 13, 2026 · Category: Finance

Overview

Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), and Meta Platforms (NASDAQ: META) are pouring hundreds of billions of dollars into data centers, chips, and other infrastructure needed to support rising artificial intelligence (AI) adoption among consumers and enterprises. Nvidia (NASDAQ: NVDA) is raking in profits on its graphics processing unit (GPU) AI chips. Meanwhile, Tesla (NASDAQ: TSLA) and Apple (NASDAQ: AAPL) have taken different approaches to AI.

But no matter the business model, every company speaks the language of free cash flow (FCF), the cash profits remaining after funding operations and capital expenditures (capex). You can divide a company's FCF by the stock's market cap to calculate its FCF yield (the higher the percentage, the better).

Details

From there, investors will see just how AI spending is impacting each of these "Magnificent Seven" stocks and identify which stocks you may want to buy and which to avoid. Here is how they currently rank.

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Source

Originally published at www.fool.com.

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