When we talk about the Magnificent Seven, we think of companies like Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta and Tesla, but since last spring, Broadcom has remained the seventh company with the highest market capitalization, surpassing the Elon Musk’s company, worth $825. billion.
Broadcom is an American technology company that divides its business into two segments: semiconductor solutions and infrastructure software. It offers business automation products, powered by artificial intelligence (AI) and machine learning, that drive digital processes and continuous delivery channels. It is well known in the world of information technology, but unknown outside of this world.
It’s unclear, however, how long Broadcom will be ahead of Tesla, at least in the short term, since Tesla shares are always, or almost always, more volatile than others. However, the long-term outlook is actually encouraging, as Broadcom’s stock is expected to continue to rise, unlike Tesla’s, according to Wall Street analysts.
Broadcom’s rise to power is unstoppable. While Tesla shares have fallen back to where they were nearly four years ago, Broadcom shares are up 290% since then.
“Broadcom operates like a private equity firm, where it invests in assets that can generate quick returns,” says Naveen Chhabra, an analyst at research and consulting firm Forrester. He is “shrewd in terms of investing in businesses where he can maintain or increase revenue” and at the same time “can transform the business into a high-margin business,” according to Fortune.
JP Morgan analysts are confident that the stock “remains our top pick in the semiconductor sector.” “It is likely that the numbers will continue to increase,” they emphasize.
a little history
The company that later became Broadcom Inc. was formed in 1961 as HP Associates, a semiconductor products division of Hewlett-Packard.8? The division was spun off from Hewlett-Packard into Agilent Technologies in 1999. In 2005, KKR and Silver Lake Partners acquired Agilent Technologies’ chip division for $2.6 billion and formed Avago Technologies, which announced in 2015 that it would acquire Broadcom Corporation. for 37 billion dollars.
Broadcom has a long history of corporate transactions (or attempted transactions) with other high-profile companies, primarily in the high-tech space.
Magnificent 7 market capitalization
1. Apple: $3.448 billion
2. Microsoft: $3.092 million
3. Nvidia: $3,064 million
4. Alphabet: $2,065,000 billion
5. Amazon: $1.957 billion
6. Target: $1.507 billion
7. Broadcom: $825 billion
(8). Tesla: $798.91 billion
