The US stock market has certainly been struggling in recent weeks. However, that changed slightly Wednesday, with the Federal Reserve expected to leave rates unchanged. The day saw Broadcom (AVGO) outperform the top 10 companies by market cap, as one analyst said it was the newest member of the “Magnificent 8.”
The company has emerged as one of the most talked-about stocks on the market throughout March. Indeed, the ongoing sell-off that has afflicted competitors like Nvidia (NVDA) has only strengthened its appeal to traders. Now, all eyes are on whether that downturn can help AVGO bridge the gap in the tech space.
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Like much of the tech sector, Broadcom entered 2025 with tremendous potential. Indeed, back in February, analysts were theorizing that AVGO could end up being the latest member of the $1 trillion club. Although Wall Street has faced a downturn since, there are still high hopes for the stock.
Indeed, the overall stepback that the market has taken may end up being a positive for the company after all. Wednesday saw Broadcom (AVGO) outgain all of the top 10 companies by market cap, as one analyst has said it has now created the Magnificent 8.
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At the midpoint of the day, AVGO had gained almost 2% to surpass the $192 mark. Moreover, the only company that came close was Nvidia, which jumped as much as 2.11% throughout the day. In a new report, HyperFRAME’s Steven Dickens discussed his bullish stance on the stock.
“We’re starting to see some of the macrotrend play out here,” he said. “But I think what I track from a Broadcom perspective is: are they exposed to the right markets, have they got that product innovation cycle rolling, and are they executing?”
Dickens added, “Hock Tan is certainly starting to set up to be one of what I describe as the Mag 8, we are going to see this company continue to grow.” That growth is exactly what could pilot a massive surge for the rest of the year for the company. In Q2, it noted AI semiconductor revenue reached $4.4 billion, a 42% year-over-year growth.
