Although perking up recently, Tesla has long been the laggard among the Magnificent Seven stocks. In terms of market capitalization, Tesla stock no longer ranks alongside Magnificent Seven stalwarts Apple, Nvidia, Microsoft, Alphabet, Amazon.com and Meta Platforms. In fact, there's now one stock — semiconductor leader Broadcom — poised to take Tesla's place on the list.
With a market cap of roughly $772 billion, Broadcom stock now accounts for 2.2% of the Nasdaq composite's weighting. That tops Tesla's 2%, with a market cap of $713 billion.
Adding insult to injury, Broadcom has also etched its name on the IBD Breakout Stocks Index, alongside Nvidia and Meta.
Broadcom Stock, Tesla Both Target Breakouts
A new market rally has lifted the Nasdaq back above its 50-day moving average.
Broadcom stock now stands above that line as it works on a later-stage consolidation with a 185.16 buy point. Although still shy of its 52-week high, the relative strength line has turned higher as the right side of its chart pattern forms.
The semiconductor firm is scheduled to report earnings on Sept. 5.
Broadcom sports a stellar 98 Composite Rating, outshining all the Magnificent Seven members except Nvidia. While on the rise, Tesla's rating remains at a mediocre 65.
Like Broadcom, Tesla stock is back above its 50-day line as it builds a potential base. As shown on the weekly chart in MarketSurge, the stock appears to be building a first-stage base with a 271 entry. But shares of Tesla trade 18% below that mark.
Nvidia stock stands closer to a fresh breakout, currently 9% shy of a 140.76 buy point in a third-stage cup pattern.
See Who Joins Broadcom, Nvidia And Meta On The IBD Breakout Stocks Index
Broadcom Grows While Tesla Slows
On June 12, Broadcom posted a beat-and-raise earnings report. The semiconductor giant generated $12.5 billion in revenue, a 43% year-over-year gain. That marked a second quarter of accelerating sales growth.
Earnings rose 7% to $1.10 per share, matching the prior quarter. For the full fiscal year, analysts forecast a 13% rise to $4.80 per share. Those estimates were recently revised higher.
Showing Wall Street's demand for shares of Broadcom stock, the company has seen eight straight quarters of rising fund ownership.
By comparison, there was no increase in fund ownership of Tesla last quarter, according to IBD Stock Checkup. However, demand for Tesla stock is on the rise. It sports an Accumulation/Distribution Rating of A-, and a strong 1.8 up/down volume ratio.
The electric-vehicle maker has seen slowing earnings growth in each of the last four quarters. Analysts predict more slowing in the third and fourth quarters.
IBD Breakout Opportunities ETF
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Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
(Editor's note: An earlier version of this story incorrectly stated the market caps for Broadcom and Tesla. Those figures should be $772 billion and $713 billion, respectively.)
