Magnificent 7 May Need to Make Room for Broadcom
From Yahoo Finance: 2025-06-19 06:30:00
Broadcom’s market value has reached $1.2 trillion, climbing over 350% since the start of 2023. Analysts predict a 22% sales increase this fiscal year and 21% in 2026, after the tech giant reported $15 billion in revenue in the most recent quarter.
Broadcom’s custom AI chips account for nearly a third of its revenue, with $4.4 billion generated in the second quarter alone. Sales are expected to rise to $5.1 billion next quarter as cloud providers like Alphabet place more orders, indicating continued AI growth.
Some analysts suggest a possible shakeup of the Magnificent Seven, a group of influential S&P 500 companies, to include Broadcom. However, others argue that trends, not just market value, should determine the group’s composition, with Tesla’s AI initiatives complicating potential changes.