Helios News - Broadcom bumps Tesla from Mag 7

Mag 7 shake-up … Broadcom (AVGO), a major player in infotech that you may have never heard of, has effectively replaced Tesla (TSLA) in the Magnificent Seven, which includes the top seven U.S. technology companies by market capitalization. Broadcom's market cap currently sits at $825 billion, surpassing Tesla’s $784 billion. The shift reflects Broadcom's growth in AI, semiconductors, and strategic acquisition of VMware, a private cloud software platform.

Broadcom's stock is up 63% so far this year, driven by the booming demand for AI-related products. Sales of its AI chips are projected to hit $12.1 billion in 2024, up from $4.2 billion the previous year, per BofA Securities. By 2025, they expect this figure to reach $16.9 billion. If BoA’s projections are realized, that would make Broadcom a trillion-dollar company.

Broadcom’s entry into the Magnificent Seven highlights a significant shift in the tech hierarchy; however, Tesla’s volatility means it may still reclaim its spot in the future. Tesla released its third-quarter production and delivery data last week to little fanfare, reporting slightly lower deliveries than analysts expected. The stock fell as much as 3.7% on the news, and share price—at $250—is just about flat YTD.

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