Broadcom’s Meteoric Rise: Unpacking Implications for Major Growth Stocks

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So, here’s the thing: Broadcom (AVGO) had this big third-quarter earnings reveal on September 4th. I mean, who doesn’t love a good earnings report, right? It’s like the Super Bowl for growth investors. And let me tell you, Broadcom decided to show up in a big way, smashing its AI revenue projections, announcing a jaw-dropping $110 billion backlog, and dolloping on optimistic forecasts for fiscal 2026. Naturally, their stock shot up to an all-time high, which is great-but this isn’t some sort of magic trick they pulled out of a hat, folks. We’re talking about a 49% increase for the year. What kind of witchcraft is this?

Now look, with a market cap of $1.57 trillion, you’d think Broadcom would be a no-brainer addition to the mega-cap growth circles, like the chic “Magnificent Seven.” But no, this exclusive club is just so picky, only admitting the likes of Nvidia, Microsoft, Apple, Amazon, Alphabet, Meta Platforms, and Tesla. Can you imagine the cocktail parties? I’d be sweating just trying to remember names.

In an interesting twist-almost sitcom-level-Broadcom is part of the “Ten Titans,” which adds Oracle (ORCL) and Netflix (NFLX) into the mix, giving a more nuanced portrait of our beloved mega-cap landscape. You see, it turns out they’re not just good for laughs; they’re becoming a big deal. Now, what does this mean for those of us trying to keep our investment portfolios balanced and moderately less dysfunctional?

Time for a Magnificent Seven Makeover

The term “Magnificent Seven” was cooked up by Black of America analyst Michael Hartnett. It’s catchy, sure, but it was also like a hashtag influenced by one too many cocktails. This gem of a phrase gained traction as these tech behemoths clawed their way back from a catastrophic 2022, when the Nasdaq plunged like a bad sitcom plot twist, losing a third of its value.

Ironically, the Magnificent Seven gallivanted to fame right as AI became all the rage. With OpenAI’s GPT-4 and Google Bard strutting onto the scene in March 2023, and Nvidia flashing $1 trillion market cap in May 2025 due to the wildfire demand for GPUs, you just knew the drama wouldn’t end there.

To put things in perspective, at the tail end of 2022, the Magnificent Seven combined goodwill was sitting at a market cap of $6.9 trillion. As of September 5, they’ve ballooned to a staggering $20.7 trillion. But hold on-our Ten Titans have outdone them, with Broadcom soaring 573% and adding $1.34 trillion to its market cap. Seriously, is there a secret sauce here?

Company Ten Titans Market Cap (Dec. 31, 2022) Current Ten Titans Market Cap (Sept. 5, 2025) Gain
Nvidia $359.5 billion $4.1 trillion 1030%
Microsoft $1.8 trillion $3.7 trillion 106%
Apple $2.1 trillion $3.6 trillion 72%
Alphabet $1.1 trillion $2.8 trillion 149%
Amazon $856.9 billion $2.5 trillion 189%
Meta Platforms $315.6 billion $1.9 trillion 499%
Broadcom $233.7 billion $1.6 trillion 573%
Tesla $389.0 billion $1.1 trillion 191%
Oracle $220.4 billion $654.2 billion 197%
Netflix $131.2 billion $528.2 billion 302%
Total $7.5 trillion $23.4 trillion 212%

As of now, the Ten Titans shackle a hefty 38.5% of the S&P 500, while the Magnificent Seven only snagged 33.8%. The thing is, Broadcom, Oracle, and Netflix could still play it smart and remain winners in the long game, despite valuations that could make your head spin.

Redefining Mega-Cap Market Leaders

Nvidia may be the reigning champ in AI models, but don’t overlook Broadcom’s increasing heft in the data center’s value chain. They’ve got these XPU AI accelerators, which are like the Swiss Army knives of application-specific circuits. Plus, they manage connections with their Tomahawk switches and Jericho Ethernet fabric routers-think of Tomahawk as the main street and Jericho as the massive interstate highways. They’re pretty crucial for connectivity.

But here’s the kicker: while Broadcom is making strides, it’s got legacy businesses in networking and mobile that are growing about as fast as molasses in winter. No one likes to talk about slowing growth-it’s like discussing your cousin’s disappointing career choice at family gatherings.

Then there’s Broadcom’s software arm, thanks to its VMware acquisition; they’re diversified-and that’s not just investor jargon. With hyperscalers like Google and Meta relying on Broadcom for custom AI chips, it’s clear they’re not a side player anymore. They’re crucial, folks! I mean, can we just acknowledge that?

Then we have Oracle and Netflix. Oracle’s gunning for the cloud space, investing like it’s going out of style, and it’s footing the bill with a capital expenditure ratio that’s got everyone raising eyebrows-and that’s an understatement. If it pays off, we’ve got a long-term Titan on our hands. If not, well, let’s just say “whoops” doesn’t quite cover it.

Netflix? Yeah, they’ve got a steep valuation, but their free cash flow is flexing like a bodybuilder. They’ve gone from being cash flow-negative to posting an absolutely mind-boggling $19.5 billion in trailing twelve months. The stock has jumped over fourfold since early 2023. This is a comeback story worthy of a movie-perhaps not a blockbuster, but definitely something to watch!

With Netflix throwing some consumer-friendly flair into the mix, it balances out the Ten Titans in this turbulent market. I mean, who knew streaming could be recession-proof? I can’t even find my TV remote half the time, so what do I know?

Broadcom’s Leadership is Undeniable

At this point, Broadcom is raking in over $450 billion more than Tesla. My goodness, can you imagine the awkward conversations? Are they playing some sort of financial game here? To put it candidly, it’s becoming painfully clear that the Magnificent Seven is a tad incomplete without Broadcom in the picture.

This company has thrust itself into the AI narrative. It’s impossible to discuss data center expansion without talking Broadcom. And yet, no one’s breaking out the confetti just yet.

Well, let’s see how long this thrilling ride lasts. 🎢

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2025-09-10 03:32