Back in January, Freedom Capital Markets Chief Market Strategist Jay Woods picked Alphabet Inc. (GOOGL) and Tesla (TSLA) as his favorite Magnificent Seven stocks for 2026. Now that we're halfway through the year, he's making a switch.

In an exclusive interview with MarketDash, Woods laid out his updated top two picks for the second half of 2026 and into 2027. Alphabet stays, but Tesla is out. In its place: Nvidia Corp. (NVDA).

"I still love the story in Alphabet," Woods said. "I like what they're doing." On the technical side, he wants to see Alphabet's stock hold above $350. He also weighed in on Alphabet joining the Dow Jones Industrial Average, replacing Verizon. "I think it's a great thing," he said, adding that he much prefers Alphabet over Verizon.

As for Tesla, Woods had named it a "story to watch in 2026" and a top pick for the year. But now he's cautious. "Tesla, I'm a little weary of it. Looked for Tesla technically and once that broke $420 I was out." Even with speculation of a potential merger between Tesla and SpaceX, Woods said he's steering clear.

Instead, Nvidia has caught his eye. "I think Nvidia has now given us an opportunity to get it on the cheap here. The recent weakness in the stock should bode well for investors who've been waiting for an opportunity to get in." Woods noted that Nvidia's revenue growth is outpacing other hyperscalers, and the company isn't spending as much. "Their fundamental story hasn't changed." He called Nvidia's stock "inviting" for the next six months or longer.

Woods emphasized that both Alphabet and Nvidia have longevity. "I think these are the two that will have the longevity." He added that Alphabet is a core holding for him personally—he's owned the stock for more than 15 years. "I put my money where my mouth is."

Just missing the cut was Apple Inc. (AAPL). Woods called it a great company but said it might be more of a long-term growth story.

Woods also addressed whether the Magnificent Seven is still relevant, given the rise of Micron Technology (MU) and the IPO of SpaceX (SPCX). "I think it will be a top index because those seven stocks' market caps are now in the top 10. And that's how you want to look at it," he said. While other stocks may come and take market cap away, Woods noted, "When you look at the story that shaped us in this bull run, this secular bull run, those were the seven stocks that started it."