Depending on who you ask, Broadcom (NASDAQ:AVGO) is already considered to be a part of the Magnificent Seven as Tesla (NASDAQ:TSLA) supposedly received the boot from the exclusive basket of high-performing, AI-leveraging tech titans when shares dragged their feet into a nasty bear market. But that was back then when TSLA stock was a relative laggard while most other Magnificent Seven stocks moved higher. Nowadays, Tesla is back in the spotlight, with shares hitting new all-time highs in the weeks following its big robotaxi event.
Undoubtedly, the initial reaction to the big day was quite negative, but it did not take long for Elon Musk’s AI-empowered electric vehicle (EV) to get on a roll again. At just north of $436 per share, up a staggering 92% in the past three months, Tesla stock has undeniably become magnificent again. But does that mean Broadcom gets the boot again, even after impressive recent gains of its own? Or is it time we start referring to the group as the Magnificent Eight?
24/7 Wall Street Key Points:
- Broadcom’s magnificence is hard to ignore after its 24% post-earnings pop.
- Personally, I already consider Broadcom to be a member of the Magnificent Seven despite Tesla’s incredible comeback.
- If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.
Broadcom stock: The unofficial Magnificent Seven stock is picking up serious traction.
I guess the only real person who can modify the group is Mad Money host Jim Cramer, who originally built the original cohort that was the Magnificent Seven, which meant to succeed the so-called FAANG stocks. For now, Broadcom is an unofficial Magnificent Seven as Tesla seems to have worked its way back into the group following its parabolic recovery on the back of developments that go above and beyond just EV sales (think robotaxis and Musk’s close ties with President-elect Donald Trump).
In any case, I think one thing is clear: Broadcom still deserves to be in the same league as the original Magnificent Seven members. After blasting off more than 24% during last Friday’s session in response to a stellar quarter and a handful of upgrades from big names on Wall Street, AVGO stock is in a melt-up of its own. And it may have legs as shares hit the ground running going into 2025.
Indeed, there are a slew of potential catalysts in store that can take Broadcom shares even higher. And in this piece, we’ll go over some of the traits that could make Broadcom a more magnificent performer than any one of the Magnificent Seven companies themselves.
Wall Street analysts rush to upgrade Broadcom stock after a fantastic quarter. One big name sees AVGO stock as a top pick for 2025.
The post-earnings analyst upgrades have been flooding in, and they could continue going into 2025. As analysts revisit the drawing board with upward revisions, there’s a good chance Broadcom can add to its recent double-digit single-day pop. Notably, William Blair praised AVGO stock as one of its top picks for the new year. They’re big fans of the VMWare acquisition, which is now paying big dividends with an integration that they view as “ahead of plan.” Additionally, Blair also remarked on the company’s “strong alignment” in custom AI chips, highlighting strong partnerships with other Magnificent Seven firms.
More recently, Apple (NASDAQ:AAPL) was one of the latest Magnificent Seven firms to ink a deal with Broadcom to build an AI server chip. Indeed, this intriguing development could be a boon for both companies as the AI revolution progresses. Personally, I think the Apple-Broadcom partnership could be one of the most impactful over the next three to five years as Apple prepares to take Apple Intelligence to the next level.
Either way, Broadcom has the means to stay magnificent as it looks to become even more magnificent over the next few years.
The bottom line
I’ll go ahead and call it now: Broadcom will work its way into the Magnificent Seven, even if it means giving the boot to a solid name or bringing forth the need to create a new term to describe the eight companies. After last Friday’s big surge, the company officially joined the $1 trillion market cap club. If it can keep performing at this high level while feeling the full force of AI tailwinds, it may be on its way to $2 trillion.
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