I Predicted Nvidia Was a Better Dow Stock Than Amazon in 2025, and I Was Right. But Which Is the Better "Magnificent Seven" Stock for 2026?

• Amazon Web Services is simply a high-margin currency cow, but maturation is slowing.

• Nvidia spot applications could rapidly grow beyond information centers to caller frontiers, specified arsenic robotics and self-driving cars.

• Nvidia is reasonably priced, fixed its impeccable concern model.

• 10 stocks we similar amended than Nvidia ›

In 2024, Nvidia (NASDAQ: NVDA) and Amazon (NASDAQ: AMZN) were added to the Dow Jones Industrial Average, replacing Intel and Walgreens Boots Alliance.

In December 2024, I predicted that Nvidia would beryllium a amended Dow banal to bargain than Amazon due to the fact that of its tenable valuation and superior concern model. The proposal was intended for semipermanent investors, not those seeking to marque a speedy nett connected a one-year clip horizon.

Still, the telephone has been close truthful far, with Nvidia gaining 38.9% successful 2025 compared to conscionable 5.2% for Amazon. In fact, Amazon was the worst "Magnificent Seven" banal successful 2025 -- underperforming Nvidia, Alphabet, Apple, Microsoft, Meta Platforms, and Tesla.

Even aft Nvidia's large 2025 gain, it remains a amended bargain than Amazon. Here's why.

In its astir caller quarter, Amazon achieved an operating borderline of conscionable 4.1% connected its non-Amazon Web Services (AWS) business, which encompasses its online and carnal stores, advertising, subscription services, third-party commissions, fulfillment, and shipping fees, and its miscellaneous "other" category. AWS is truthful profitable that it made up 60% of Amazon's operating income for the 9 months ended Sept. 30, 2025, adjacent though it's little than a 5th of full Amazon sales.

With 35.6% operating margins for the 9 months ended Sept. 30, AWS is simply a high-powered currency cattle and the crown jewel successful Amazon's crown. But AWS maturation has slowed successful caller years arsenic it faces mounting contention from Microsoft, Alphabet's Google Cloud, and Oracle.

While AWS helps substance Amazon's broader business, Nvidia is much of a pure-play artificial quality (AI) company. Its information halfway income present marque up astir 90% of full revenue. And the different 10% of the concern is besides precocious margin, with extremity markets similar gaming, nonrecreational visualization, automation, and robotics.

Nvidia's presumption astatine CES earlier this period showcased its caller Rubin architecture, which consists of six antithetic chips designed for the adjacent signifier of AI advancement -- agentic AI, robotics, and autonomous driving. Nvidia is releasing Rubin up of schedule, with deployments to hyperscalers -- including AWS -- connected way for the 2nd fractional of 2026.