Overview

• Broadcom’s stock has climbed 340% since early 2023, lifting its market capitalization to $1.2 trillion and ranking it as the seventh-largest company in the S&P 500.
• Analysts expect Broadcom’s sales to increase 22% in fiscal 2025 and 21% in fiscal 2026, second only to Nvidia among established Magnificent Seven members.
• Revenue growth is powered by custom chip design and networking semiconductors that serve booming AI infrastructure spending.
• Shares trade at roughly 33 times forward earnings, marking a premium valuation above most peers and the broader market.
• Some portfolio managers cite Tesla’s projected 1% revenue decline and 22% stock drop as grounds for either replacing it with Broadcom or expanding the elite group into a “Magnificent Eight.”