Dave Mazza probably thinks about the Magnificent Seven stocks more than most people think about their retirement accounts. As CEO of Roundhill, he oversees the Roundhill Magnificent Seven ETF (MAGS), which has been tracking these tech giants since its 2023 launch. So when it comes to picking winners from the group for 2026, he's got some thoughts worth hearing.
In an exclusive conversation with MarketDash, Mazza shared his top picks and explained why sometimes the best opportunities hide in plain sight.
The Clear Winner Heading Into 2026
Mazza isn't losing sleep over the fact that only three of the Magnificent Seven stocks managed to beat the S&P 500 in 2025. Instead, he's focused on which ones have the momentum and fundamentals to carry forward.
His top pick? Alphabet Inc. (GOOGL), and for good reason.
"Alphabet stands out. It came into 2026 in a clear uptrend, is making new highs, and is already outperforming," Mazza explained. The numbers back him up. Alphabet crushed it in 2025 with a 65.2% gain, making it the best performer among the Magnificent Seven.
But here's what really matters: "More importantly, investors are getting comfortable with how AI monetization fits alongside its core businesses. That combination tends to attract incremental capital."
In other words, the market figured out that Alphabet isn't choosing between its traditional search business and AI. It's doing both, and doing them well.
The Comeback Kids Worth Watching
Mazza's most interesting calls aren't about the winners, though. He's eyeing two stocks that actually underperformed in 2025.
"The two most interesting setups are Apple and Microsoft. Both have been under pressure and are sitting near important support levels. If they're going to respond, this is where it is mostly likely to happen. Neither company has lost strategic relevance, so the risk-reward is starting to look better."
Apple Inc. (AAPL) gained 11.5% in 2025, while Microsoft Corp. (MSFT) rose 15.5%. Both trailed the S&P 500's 16.6% return. But that relative weakness might be setting up opportunity rather than signaling trouble.
These aren't companies losing their edge. They're established tech giants trading at levels where the downside looks limited and the upside looks promising.
When Success Becomes Pressure
Here's where Mazza's analysis gets interesting. When asked which Magnificent Seven stocks face the most pressure, he didn't point to the laggards. He pointed to the leaders.
"The most pressure is actually on the strongest names. Alphabet fits that bill because it's become a consensus AI favorite. Nvidia does too. When expectations are that high, execution needs to stay near perfect," Mazza said.
NVIDIA Corp. (NVDA) finished second in the Magnificent Seven standings for 2025 with a 34.8% gain. That's an incredible return, but it also means investors are expecting more of the same. Any stumble gets magnified when you're everyone's favorite stock.
Mazza also gave an honorable mention to Apple (AAPL) for facing a different kind of pressure. "It spent a stretch trading as an anti-AI name, but that narrative has shifted with deeper AI integration, including reports around pairing Siri with Gemini. That removes a real overhang."
Sometimes the best thing that can happen to a stock is for the market to stop worrying about the wrong thing.
Picking Between The Major Indexes
When it comes to choosing between the major market indexes for 2026, Mazza sees a relatively balanced playing field.
"I don't expect big dispersion between the major indexes," he said. "If growth holds up, investors should be rewarded simply by staying invested."
Pressed to choose between the SPDR S&P 500 ETF Trust (SPY), Invesco QQQ Trust (QQQ), and SPDR Dow Jones Industrial Average ETF (DIA), Mazza gave a slight edge to the S&P 500.
"If I had to pick one, it would be the S&P 500. Its balance across growth, cyclicals and defensives makes it the cleanest expression of a market where leadership rotates rather than concentrates."
Translation: when you're not sure which sector will lead, diversification wins.
The Small-Cap Surprise
Perhaps the most compelling opportunity Mazza sees for 2026 isn't in the Magnificent Seven at all. It's in small-cap stocks, which have struggled to keep pace with their larger counterparts since March 2021.
"Small caps are trading at all-time highs and outperforming their large-cap counterparts. Given how difficult this corner of the market has been for so long, we believe investors may be slow to embrace the breakout, creating a compelling opportunity."
The timing of Mazza's comments was impeccable. The iShares Russell 2000 ETF (IWM), which tracks the Russell 2000 small-cap index, hit new all-time highs on Thursday, right after his interview. The ETF is up 15.6% over the past year, outpacing the SPY's (SPY) 13.1% return.
When a market segment spends years underperforming and investors get burned repeatedly, skepticism tends to linger even after the trend reverses. That skepticism creates opportunity for those willing to pay attention to what's actually happening rather than what happened before.
