Broadcom in Magnificent 7: How Broadcom Knocked Out Tesla
Recently Broadcom has ranked above Tesla with a Market cap of $803 billion, knocking Tesla’s Market capitalization of $768 billion in the list of the Magnificent 7 for companies with the convinced group of stock in early 2023.
Times make the thing possible from impossible. It can be proven with the news that Broadcom a less popular company has knocked out the big giant Tesla from the latest of the most valuable tech companies worldwide.
It is interesting to learn how Broadcom knocked out Tesla from Magnificent Seven, being the hardware and software producer. The business is known in the InfoTech world, not in other areas. At the Top of the list in the Magnificent 7 are-: Apple, Microsoft, Nvidia, Alphabet, Amazon, and Meta. In this article, we will know how it happens.
How Broadcom knocked out Tesla from Magnificent 7
In the recent list of Magnificent 7 where the market cap is the main method of ranking of tech companies. The company was the grandchild of Hewlett-Packard in 1992. The company produces the hardware and software reached a market cap of $803 billion overtaking Tesla ($768 Billion). The demand for semiconductors is the main reason for the rise in market capitalization.
There can be more factors that might contribute to Broadcom becoming one step ahead of Tesla-:
Semiconductor Demand
The global semiconductor shortage has increased demand for Broadcom’s products, which are essential components in various electronic devices.
Strong Financial Performance
Broadcom has consistently delivered solid financial results, with increasing revenue and profits.
Also read: Open AI Net Worth Revealed: Transform to Profitable Venture
Strategic Acquisitions
The Company’s Avago Technologies and Brocade Communications Systems acquisitions have expanded its product portfolio and market reach.
Diversified Business Model
Broadcom’s business model is less reliant on a single product or market, making it more resilient to economic fluctuations.
Investor Confidence
Positive investor sentiment towards Broadcom’s prospects has driven up the stock price.
Yet it is difficult for Broadcom to sustain its rank, as Tesla will rise and will conquer the tech companies as well. The Tesla shares market is very volatile and can beat the market cap of Broadcomin the future.
What is the Magnificent 7?
The Magnificent Seven is a list of the seven most valuable technology companies in the world. The composition is dynamic since the valuations of companies change as time passes.
The list of the Magnificent Seven generally includes some of the biggest companies comprising Apple, Microsoft, Alphabet (Google), Amazon, Broadcom, tesla, Meta (Facebook), and Nvidia.
However, this list is not fixed and other companies can be included in the future depending on market capitalization and performance across all factors and the market.
The latest ranking of the Magnificent 7
The list showcases the tech companies that have a high market cap value that makes them the most valuable companies. These are convinced stocks for the stock’s value of early 2023.
The list is available on the companies market cap, the glimpses are listed below-:
- Apple ($3.3 Trillion)
- Nvidia ($3.132 Trillion)
- Microsoft ($3.044 Trillion)
- Alphabet ($2.64 Trillion)
- Amazon ($1.897Trillion)
- Meta ($1.47Trillion)
- Broadcom ($8.17 Billion)
- Tesla (7.69 Billion)
Conclusion
The most unpopular company Broadcom has knocked down the well-known company Tessla from Magnificent Seventh as the share of Broadcom was higher in 2023 because of the high demand for semiconductors and the rise in the importance of that in the market. Broadcom is not guaranteed that it will be ahead of Tesla in the future as the Tesla stock is volatile and can change anytime. All of us know that no tree touches the sky, but for now, the sun is rising for the Broadcom. It can’t be predicted the time for how much duration it will rise.
