What’s the best Magnificent Seven stock to buy if Trump wins in November?

Only once in U.S. history has a former president who lost re-election after his first term managed to become president again. The last time this happened was in 1892, when Grover Cleveland became the first – and so far only – president to be elected to two non-consecutive terms.

But Cleveland could soon have company. Former President Donald Trump is in a neck-and-neck race with Vice President Kamala Harris in the 2024 presidential election campaign. If elected, his policies could impact the operations of the so-called “Magnificent Seven” companies: alphabet (GOOG 0.82%) (GOOGL 0.72%), Amazon (AMZN 1.16%), Apple (AAPL -0.65%), Metaplatforms (META 1.05%), Microsoft (MSFT 0.11%), Nvidia (NVDA -0.01%)And Tesla (TSLA -8.78%). What’s the best Magnificent Seven stock to buy if Trump wins in November?

Trump’s proposals that could impact the Magnificent Seven

Three key Trump proposals could have the biggest impact on the Magnificent Seven. The Republican presidential candidate’s proposed corporate tax cuts are probably at the top of the list.

During his first term, Trump signed legislation that overhauled the federal corporate tax rate structure. Previously, large corporations paid federal taxes of 15% to 35%. After the Trump tax cuts, these companies paid a flat 21% tax. The former president wants to reduce that rate to 15% if he is re-elected.

Another important part of Trump’s economic policy for a possible second term is the introduction of blanket tariffs. He promises to impose tariffs of up to 20% on all imported products. Trump, who describes himself as a “tariff man,” wants to impose 60% tariffs on goods imported from China. He has also threatened to impose 100 percent tariffs on products made in Mexico.

When Trump was previously president, he was a fan of deregulation. When he returns to the White House, reducing federal regulations is likely to be the focus again. Trump wants to delete ten existing regulations for every new regulation. One promise that is particularly relevant to the Magnificent Seven is its promise to repeal an executive order signed by President Biden that governs artificial intelligence (AI).

How the Magnificent Seven might be affected

Paying less federal taxes should be beneficial for all of the Magnificent Seven. However, the impact of Trump’s proposed corporate tax cuts may not be as great as it seems. As the table below shows, none of these giant companies pay the current federal tax rate of 21%.

Data Sources: Company 10-K filings. *Tesla received more tax benefits than it paid in taxes in 2023.

Higher tariffs could particularly affect the “Magnificent Seven” companies that rely on imported products and components. Although companies would likely pass on the increased costs to consumers, the higher prices could have a negative impact on sales.

Apple would likely be the most affected by the tariffs due to its global supply chain. Everyone else could feel the effects of higher tariffs too. The Magnificent Seven members that generate more revenue from services, particularly Alphabet and Meta, would likely be least affected by Trump’s proposed tariffs.

What about Trump’s focus on deregulation? I think the major cloud service providers – Amazon, Microsoft and Alphabet – could be helped by reduced AI regulations. The same goes for Nvidia and, perhaps to a lesser extent, Meta and Tesla.

However, Trump has specifically criticized Alphabet, telling Fox Business host Maria Bartiromo in a recent interview: “Google was very bad. They were very irresponsible. And I feel like Google is on the verge of shutting down because I don’t think Congress will accept it. The former president also called Metas Facebook “a true enemy of the people” in a social media post.

And while Tesla CEO Elon Musk supports Trump for president, Trump’s proposed policies could hurt Tesla. The Republican presidential candidate has railed against federal incentives for electric vehicles in the past. On the other hand, he told an audience at one of his rallies: “I am for electric cars. I have to be because Elon has been very supportive of me.”

The best Magnificent Seven stock to buy if Trump wins

So which Magnificent Seven stock is best to buy if Trump wins in November? I think it’s a close competition between Microsoft and Nvidia.

Microsoft could benefit more from Trump’s proposed corporate tax cuts because it pays the highest effective tax rate of the Magnificent Seven companies. Both Microsoft and Nvidia could be hurt to some extent by the former president’s tariffs, but his regulatory policies could help them. Trump has not been the target of attacks like Alphabet and Meta, nor have the industries they operate in been the target of his wrath like Tesla.

However, I believe Nvidia has better growth prospects than Microsoft. If I had to pick just one Magnificent Seven stock to buy if Trump returns to the White House, I would buy Nvidia.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of Mark Zuckerberg, CEO of Meta Platforms, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Keith Speights has positions at Alphabet, Amazon, Apple, Meta Platforms and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla. The Motley Fool recommends the following options: long $395 January 2026 calls on Microsoft and short $405 January 2026 calls on Microsoft. The Motley Fool has a disclosure policy.