Jim Cramer Recently Reviewed the Magnificent Seven Stocks

1. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 243

Alphabet Inc. (NASDAQ:GOOGL) is one of the Magnificent Seven stocks Jim Cramer recently reviewed. Cramer highlighted his regret after selling the stock for the Charitable Trust in 2025. The Mad Money host said:

“Let’s take them one by one because this feels like 2026 will be another year where individual stock picking is really going to start mattering. Remember, this is my big theme. Alphabet and NVIDIA, I think, are going to be two huge outperformers just like 2025… I gotta tell you, it does hurt me to see Alphabet as the best performing Mag Seven stock last year because, like an idiot, I sold it for the Charitable Trust. We threw in the towel last spring… But I spent the rest of the year regretting that move…

How about those AI worries? Turns out you didn’t need to be worried at all. You didn’t be afraid of generative AI when you got the best platform, and that’s what Google has with Gemini. Plus, there was never going to be any cannibalization here because Google just slapped their AI overview right on top of their search results page. Brilliant… Being the default generative AI platform for Google Search is a huge advantage. Who knows, maybe they’re going to pay Apple and do it for that, too.

Finally, in November, as the rest of the AI complex started to roll over, Alphabet surged higher because that’s when they released the latest version of Gemini, Gemini 3, which was almost instantly recognized as the best in the business… Look, that’s just search and AI. Alphabet’s got a lot more going for it. YouTube may be the most important and well, of course, watched force in media… Waymo’s the undisputed leader in robotaxis.

These guys even made some big advances in quantum computing, and don’t forget about Google Cloud, that’s their thriving cloud infrastructure business that competes with Amazon Web Services and Microsoft Azure, and many people think it does better than both. Of course, the one thing you can’t say about Alphabet anymore is that the stock is cheap. For a while last year, it was trading at a discount to the S&P 500, but it now sells for a nice premium. Still, the stock’s not that pricey at 28 times this year’s earnings estimates when you consider the growth rate. Given everything Alphabet has going for it, I think that’s reasonable, which is why we bought the stock for the Charitable Trust. We bought it back again near the end of the year. I intend to make it a big position. I bet it keeps climbing in 2026. I was tempted to buy some even today for the trust when this stock was down almost five points. It closed down $2.22.”

Alphabet Inc. (NASDAQ:GOOGL) provides tech-related products and services, including search, advertising, cloud computing, AI tools, and digital content platforms like YouTube and Google Play.

While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOGL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GOOGL and that has 100x upside potential, check out our report about this cheapest AI stock.

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