This Is Why Broadcom’s Market Cap Will March Past More Magnificent Seven Stocks In 2026

Broadcom (NASDAQ:AVGO | AVGO Price Prediction) isn’t a member of the Magnificent Seven, but it’s now tussling with those same companies for the largest market cap. The AI chipmaker surpassed Tesla (NASDAQ:TSLA) to become the 7th largest publicly traded corporation, and it’s poised to move further up in the rankings. Meta Platforms (NASDAQ:META) is an easy candidate since Broadcom briefly had a higher market cap than Facebook’s parent company this year. However, Broadcom also has a chance to exceed Amazon’s (NASDAQ:AMZN) market cap in 2026. These are some of the reasons Broadcom should continue to build on its success. 

Broadcom Is At The Center Of The AI Boom

Broadcom is a key player in artificial intelligence and works with big tech companies. AI has been the hottest industry due to its wide-ranging possibilities. AI models like ChatGPT demonstrated how quickly AI products and services can gain momentum and translate into tangible businesses. That’s a key distinction from the Dotcom boom, where companies just had to put “.com” after their names to enjoy stock rallies.

AI has become a key part of Broadcom’s 700% rally over the past five years, and it’s still growing at a fast rate. Broadcom grew its AI segment by 74% year-over-year in Q4 FY25, and CEO Hock Tan told investors that AI revenue will more than double year-over-year in Q1 FY26. Total revenue grew by 28% year-over-year in the quarter, and Broadcom expects to mirror that growth rate in Q1 FY26.

Broadcom’s net income almost doubled year-over-year, and net profit margins are approaching 50%. The strong financial results were enough for Broadcom to hike its dividend by 10%. Broadcom has raised its dividend for 15 consecutive years.

Custom Chips Are Becoming More Important

Nvidia (NASDAQ:NVDA) is the leading AI chipmaker, but custom AI chip makers like Broadcom have been gaining market share. Custom chips are less expensive and can help with specialized tasks. They are more efficient and faster than Nvidia’s GPUs, but only for specific workloads. Nvidia’s chips are still more valuable for broader AI projects.

Custom AI chips ramp up the competition a bit and may limit Nvidia’s future price hikes on its chips. Nvidia has picked up on this trend and recently acquired custom AI chipmaker Groq for $20 billion. It’s Nvidia’s largest deal and reflects its desire to minimize competition. Broadcom is too big to be acquired with a $1.67 trillion market cap. While Nvidia faces some big competitors, acquiring smaller companies can keep chip prices high, even if the growing popularity of custom AI chips places some limits on how much chipmakers can raise their prices.

Revenue Growth And Profit Margin Expansion Remain Attractive

Growth stocks must deliver enticing revenue growth and boost profit margins to outperform the S&P 500. Broadcom continues to check both boxes with its 28% year-over-year revenue growth and profit margins hovering near 50%. Custom AI chip demand should continue to grow in 2026, with big tech companies saying that they will raise their AI budgets next year.

Broadcom’s revenue growth rate exceeds Meta Platforms’ and Amazon’s growth rates. The AI chipmaker also enjoys higher profit margins than both companies. Broadcom is poised to surpass Meta Platforms in 2026, and it has a shot at overtaking Amazon by the end of the decade. The remaining Magnificent Seven stocks are a bit more difficult to reach, with all of them clearing $3.5 trillion market caps.