The term "Magnificent Seven" is used to describe Alphabet, Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Meta Platforms, Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and Tesla. They are the seven most valuable companies in the Nasdaq Composite (as of Nov. 24), and to say they've had a good year would be an understatement by most measures.

Nvidia has had quite a year. Its stock is up more than 225% this year, far outperforming the Nasdaq Composite's roughly 36% gains. Most of this can be attributed to AI-related hype and how Nvidia fits in the value chain as a market leader in graphics processing units (GPUs) and other technologies.

Despite the attention Nvidia has received this year and the gains its stock has seen, I believe there are three better buys in the Magnificent Seven for long-term investors. Microsoft, Apple, and Amazon all provide a better long-term value proposition than Nvidia because of their diversified (and proven) business models.

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Source Fool.com