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Key Points
- The “Magnificent Seven” overlooks key companies in the tech sector.
- Broadcom has seen a 450% increase in stock value over three years, surpassing a $1 trillion market cap.
- Oracle’s cloud division is experiencing a 27% year-over-year revenue surge, solidifying its market position.
- Netflix’s stock has rebounded, making it one of the top 20 S&P 500 companies by market cap, currently valued around $500 billion.
Bank of America analyst Michael Hartnett originally coined the term “Magnificent Seven” to describe seven major tech companies: Nvidia, Microsoft, Apple, Amazon, Alphabet, Meta Platforms, and Tesla. Critics argue that this grouping neglects significant players like Broadcom and Oracle, which have recently transformed their business strategies and capability in the tech landscape.
Broadcom’s share price has surged approximately 450% in the past three years as it focuses on AI and various end markets including storage and cybersecurity. Similarly, Oracle has transitioned from a legacy business to a leader in cloud services, achieving a 27% increase in its cloud revenue and positioning itself uniquely alongside existing giants. Netflix, while once struggling, has rebounded to become a top contender in the streaming world, maintaining a competitive edge through improved content management.
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