Gary Black says Broadcom is cheaper than Magnificent Seven stocks

Future Fund Managing Partner Gary Black is doubling down on one of his favorite stocks in recent weeks, with a call to look at the valuation metrics of the Magnificent Seven stocks and another large technology company, a grouping he calls the "Mag 8." Mag 8 Valuations A recent drop in Broadcom Inc (NASDAQ: AVGO ) shares after quarterly earnings has left the stock trading at a lower valuation than the Magnificent Seven stocks. Black highlights the discrepancy in a recent social media post and chart.

Here are some of the highlights from the chart: STOCK YTD RETURN (AS OF 9/8) 2026 P/E 2026 PE TO 5-Year EPS GROWTH NVDA +20.2% 25.1x 1.1x GOOGL +5.8% 17.7x 1.1x AAPL +16.1% 35.4x 3.7x MSFT +1.6% 26.5x 1.4x AMZN +9.2% 19.9x 1.5x META +6.8% 18.9x 1.3x TSLA -17.9% 222.2x 4.8x AVGO +5.1% 28.0x 0.9x "The cheapest of the Mag 8 on 2026 P/E vs forward long-term eps growth (PEG) is $AVGO at 0.9x," Black tweeted. For comparison, Tesla Inc (NASDAQ: TSLA ) is the most expensive of the eight stocks with a PEG of 4.8x. Black highlights Nvidia Corporation (NASDAQ: NVDA ) as the best year-to-date performer of the eight stocks, with a low PEG of 1.1.

Tesla, with a high PEG, is the worst-performing Mag 8 stock. Read Also: Broadcom Beats Q3 Estimates as AI Revenue Jumps 221%, Shares Slide on Soft Guidance Black on Broadcom Stock Black recently defended Broadcom stock after shares fell following third-quarter financial results. The company’s AI-related revenue had Black expecting shares to rebound from the immediate negative reaction. “As the AI Rev strength becomes clearer to investors, I expect the stock to recover somewhat,” Black tweeted.

Black highlighted Broadcom CEO Hock Tan, who said AI chip demand is higher than what they can currently ship. Third-quarter AI revenue of $16.7 billion was up 221% year-over-year and beat a Street consensus estimate of $15.9 billion. Black also highlighted Broadcom’s guidance for fourth-quarter AI revenue to be $21.7 billion, which would be up 236% year-over-year. That total is above a Street consensus estimate of $21.3 billion.

For fiscal 2026, Broadcom now sees AI revenue hitting $58 billion, up from a previous guide of $56 billion. That total would be up 186% year over year. Broadcom stock closed at $367.24 on Sept. 2, the day of third-quarter earnings.

Shares opened at $351.74 the following morning. Over the last week plus, the stock has somewhat recovered, with shares now trading at $361.12, higher than their opening price after earnings, but still lower than where they were before the earnings print. Based on earnings forecasts, the stock is cheaper than other Mag 8 names and could still be an option for investors after the post-earnings decline. Read Also: Broadcom’s AI Boom Has A Memory Problem Image via Shutterstock