Broadcom should replace Tesla in the ‘Magnificent 7,’ says Interactive Brokers’ Sosnick
Broadcom’s rise in 2024 is cause for the chipmaker to replace Tesla in the “Magnificent Seven,” according to Interactive Brokers Chief Strategist Steve Sosnick. “Broadcom captures the whole zeitgeist of the moment right now,” Sosnick told CNBC’s ” Squawk on the Street ” on Monday. “It’s an AI stock much more so. Even though Tesla might be one in the future, Broadcom is one now.” The chipmaker has surged nearly 62% in 2024. The company last week reported stronger-than-expected earnings, sending shares up more than 23% during that time. Broadcom also announced a 10-for-1 stock split. AVGO TSLA YTD mountain Broadcom and Tesla stock year to date Sosnick’s comments come as Tesla struggles in 2024. Tesla is down nearly 27% year to date as sluggish electric vehicle adoption pressures sales. Legacy automakers have also trimmed plans to expand into the sector, as consumers are showing partiality toward hybrids over EVs. Sosnick said the stock market is being driven in part by “FOMO,” or fear of missing out. “Broadcom is part of it and Tesla is not right now,” he said. Technology stocks have led the market gains this year, with the Nasdaq Composite notching a fresh record-high last week alongside the S & P 500 . As for Broadcom, the company is seeing strong demand driven by continued artificial intelligence hype, with customers in need of high-capacity chips that can power the complex AI applications the technology industry is chasing. Broadcom CEO Hock Tan told investors during an earnings call on Wednesday that the company has seen “hyperscale customers” significantly step up orders to power their AI suites.