Broadcom’s 340% Rally Has Wall Street Debating If It's Magnificent Seven Material

For more than two years, conversations about the biggest, most important technology companies have revolved around the same seven stocks. Now, some on Wall Street are making the case that Broadcom Inc. should be part of that discussion.

Relentless spending on artificial intelligence computing gear has juiced the chipmaker’s revenue and profits, driving a more than 340% rally since the start of 2023 and vaulting it into an elite cohort of stocks with a market value of at least $1 trillion. Meanwhile, Tesla Inc. — one of the original so-called Magnificent Seven stocks — has tumbled 22% this year as Chief Executive Officer Elon Musk’s foray into US politics sparked a backlash against the electric vehicle maker.