Last month’s volatility brought a bit more than a 5% decline in the major indices, but the real damage occurred beneath the surface, where speculative pockets of the market corrected sharply. For now, it appears that phase of selling has passed.

Amid the volatility, a few stocks held up remarkably well, most notably Alphabet ((GOOGL Quick QuoteGOOGL - Free Report) ) and Apple ((AAPL Quick QuoteAAPL - Free Report) ). Both spent the month pushing to new highs and continued accelerating as the market regained its footing over the last week. Stocks that show relative strength during weakness often reemerge as leaders in the next leg higher. In this case, Alphabet and Apple also demonstrated that Wall Street had severely underestimated their strategic position in the AI ecosystem.

Alphabet’s newest LLM, Gemini 3, impressed users with its reasoning ability. Even more important, the market finally grasped the significance of Alphabet’s TPU silicon. Apple, meanwhile, despite spending only a fraction of what other hyperscalers invest in AI infrastructure, remains the single most important platform for AI usage. How this went under the radar for so long is almost comical, but Apple is once again reasserting its dominance.

Looking ahead to the most compelling Magnificent 7 opportunities for 2025, one more name stands out: Tesla ((TSLA Quick QuoteTSLA - Free Report) ). The fundamentals are mixed with flat sales growth this year and a premium valuation, but the Optimus humanoid robot narrative has the potential to become a major upside catalyst. And anyone who follows Tesla closely knows the stock tends to trade in long, choppy basing patterns followed by explosive rallies. After several turbulent years and exceptionally wide swings, Tesla now looks technically poised for what could be a significant breakout.

Image Source: Zacks Investment Research

Alphabet Stock Gains on TPU Win

Alphabet has shifted from perceived AI underdog to the industry’s first truly vertically integrated AI company, something it has been, but only recently has the market begun to fully appreciate. The turning point came when Google trained its latest LLM entirely on its own custom silicon, the Tensor Processing Units (TPUs). This marks a meaningful shift in the AI landscape and represents one of the first credible challenges to Nvidia’s dominance in training hardware and the broader development ecosystem.

Morgan Stanley underscored this point today, projecting that TPU-related revenue could reach $13 billion by 2027, adding roughly $0.40 per share to earnings. Analyst Brian Nowak noted a significant upward revision in unit forecasts: about 5 million TPUs expected in 2027 and 7 million in 2028, compared with earlier estimates of 3 million and 3.2 million. While most of this production will support Alphabet’s internal AI expansion and cloud workloads, the scale of the projected ramp, 12 million units over two years, signals clear commercial ambitions as enterprises accelerate their need for high-performance AI compute.

As shown in the chart below, GOOGL shares have been exceptionally strong, with price action again forming a new bull flag over the past week. A sustained move above $320 would confirm a technical breakout, positioning the stock well for continued strength into 2026.

Image Source: TradingView

Shares of Apple Push Record Highs

Apple’s stock continues its relentless climb, hitting new all-time highs again today. Earlier this year, Apple was widely labeled an AI laggard, yet over the past several months it has completely reversed that narrative. The company has avoided the investor concerns weighing on hyperscalers over massive AI infrastructure spending, while benefiting from a renewed understanding that Apple remains the dominant platform for real-world AI usage, thanks to its monopoly in mobile compute and its custom M-series silicon computers.

Concerns about slowing iPhone demand have also faded. Recent results showed stronger-than-expected unit trends, and every major business segment is now back to growth. The M-series Macs continue to lead the industry in performance and efficiency, and Apple’s services division, its highest margin and fastest growing business, has surpassed 1 billion users. While revenue growth is running in the high single digits, earnings growth is accelerating into the low double digits, reflecting continued operating leverage.

Despite its recent surge, Apple has actually been a relative laggard year-to-date, which may prove constructive heading into 2026. With strong fundamental tailwinds and large institutions likely to rotate back into underperforming mega-cap leaders, Apple appears well positioned for a strong year ahead.

Image Source: TradingView

Tesla Stock on the Verge of Major Breakout

Tesla has become the black sheep of the Magnificent 7, weighed down by Elon Musk’s polarizing public profile and a clear slowdown in vehicle sales growth. Yet while the automotive business has struggled, Musk’s broader ecosystem, particularly xAI and the privately held X platform, continues to gain traction. And true to form, Musk is channeling his energy into what may be the most ambitious opportunity of his career: humanoid robots.

This morning, Michael Burry resurfaced his Tesla short, calling the stock “ridiculously overvalued.” History, however, has not been kind to Tesla bears. Even Jim Chanos, one of the most respected short sellers in the world, never profited from his long-running Tesla short. The more important point is that the humanoid robotics narrative is likely to become a major market theme heading into 2026. Early hints of it emerged this year, but the technology is advancing rapidly. Musk often unveils products early, but if Tesla succeeds in bringing a capable humanoid robot to market, the implications for the company and the broader economy, are unfathomable. Under that scenario, Tesla could plausibly challenge for the title of the world’s most valuable company.

Technically, Tesla is setting up in classic fashion. The stock tends to trade in long, volatile boom-bust cycles. After an extraordinary rally from 2020–2022, it has spent the last few years in a broad consolidation phase. That basing pattern is now resolving, with shares approaching record highs. A decisive breakout above this range would be a significant technical signal and could trigger a powerful upside move.

Side note: In a recent interview, Musk also remarked that he believes Alphabet “is going to be pretty valuable in the future,” underscoring his recognition of the shifting AI landscape and the growing importance of the company’s role.

Image Source: TradingView

Should Investors Buy Shares in AAPL, GOOGL and TSLA?

Taken together, Alphabet, Apple, and Tesla represent three very different but equally compelling setups heading into 2026. Alphabet is benefiting from a structural re-rating as investors finally appreciate the significance of its TPU leadership and fully integrated AI stack. Apple has quietly reclaimed its position as a dominant platform while delivering steady growth, expanding margins, and new product momentum. Tesla, despite controversy and mixed fundamentals, is approaching a major technical inflection point just as the humanoid robot narrative gains credibility.

Each stock has its own risks, but all three offer strong catalysts and improving technical trends. For investors seeking exposure to the next phase of AI-driven market leadership, GOOGL, AAPL, and TSLA remain among the most attractive opportunities within the Magnificent 7.