2 Leading Technology Stocks Worth Purchasing This March

Tech Giants Face Early 2026 Setbacks

After several years of impressive growth driven by artificial intelligence, leading technology companies have entered 2026 on a challenging note. As of March 10, each member of the "Magnificent Seven" group of stocks has declined since the start of the year, and the S&P 500 has slipped by approximately 0.7%.

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Among the Magnificent Seven, Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) have experienced particularly sharp drops, with Amazon down over 7% and Microsoft falling more than 15% so far this year. Despite these declines, I consider both to be excellent technology investments for March.

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Amazon: A Revenue Powerhouse

While Amazon is widely recognized for its dominance in online retail, the company has diversified far beyond e-commerce. Today, Amazon operates the world’s largest cloud computing platform (Amazon Web Services), a rapidly expanding digital advertising segment, and entertainment ventures such as Prime Video and Twitch. The company is also making strides in artificial intelligence hardware, developing its own AI chips.

Amazon’s three core segments—e-commerce, AWS, and advertising—are all showing strong momentum. The e-commerce division is becoming more streamlined with increased automation in warehouses. AWS is regaining growth as demand for AI and cloud services accelerates, and advertising continues to deliver high profit margins, boosting Amazon’s overall profitability.

Despite recent share price weakness, Amazon remains a financial juggernaut. In 2025, the company generated $716.9 billion in revenue, overtaking Walmart (which posted $713.2 billion) as the world’s highest-earning public company.

This robust financial performance gives Amazon the flexibility to enhance its existing businesses and invest in innovative, higher-risk projects.

With established revenue streams and the cash flow to pursue new opportunities, Amazon is well-positioned for sustained growth over the long term.

Microsoft: A Reliable Long-Term Choice

Microsoft stands out as one of the most stable options among the Magnificent Seven, thanks to its broad business portfolio and extensive base of enterprise customers. While much attention is currently focused on AI and Microsoft’s anticipated investments in the field, the company’s core operations are expected to remain strong regardless of AI’s trajectory.

Investing in Microsoft means backing a company built for resilience. Its products and services are integral to countless organizations worldwide, many of which depend on Microsoft for daily operations. This creates a steady stream of recurring revenue, even during economic downturns, as businesses are less likely to cut essential services compared to fluctuating consumer spending.

From an AI perspective, Microsoft is well-placed to benefit from advancements in the field without being entirely dependent on them. Its platforms—such as Office, Azure, Teams, and Windows—are poised to capitalize on AI growth, unlike many tech firms that are solely focused on artificial intelligence.

Additionally, Microsoft is becoming increasingly vertically integrated in the AI sector. The company is developing its own AI chip (Maia 200), operates Azure—the world’s second-largest cloud platform—and maintains a wide array of distribution channels through its popular software offerings.

Attractive Valuations for Leading Tech Stocks

Although Amazon and Microsoft have seen their stock prices drop significantly, further declines are always possible. Predicting short-term price movements is difficult, but current valuations may present compelling opportunities for investors to initiate or expand positions in these industry leaders.

Amazon’s price-to-earnings (P/E) ratio now stands at 29.7, well below its ten-year average of 113.8. Microsoft’s P/E ratio is 25.3, compared to its decade-long average of 33.2. While these figures alone don’t guarantee a buy, they do suggest an appealing entry point for high-quality technology stocks.

Is Now the Right Time to Invest in Amazon?

Before purchasing Amazon shares, keep this in mind:

The Motley Fool Stock Advisor team has recently highlighted what they believe are the 10 best stocks to buy right now—and Amazon did not make the list. The selected stocks have the potential to deliver substantial returns in the years ahead.

For example, when Netflix was recommended on December 17, 2004, a $1,000 investment would now be worth $508,607.* Similarly, a $1,000 investment in Nvidia following the April 15, 2005 recommendation would have grown to $1,122,746.*

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*Stock Advisor performance as of March 13, 2026.

Stefon Walters owns shares of Microsoft and Walmart. The Motley Fool holds positions in and recommends Amazon, Microsoft, and Walmart. For more details, see our disclosure policy.

This article was originally published by The Motley Fool