Gary Black says Broadcom is cheaper than Magnificent Seven stocks
Future Fund’s Gary Black said Broadcom trades at a lower valuation than the Magnificent Seven after its post-earnings drop. He called AVGO the cheapest of the “Mag 8” on 2026 P/E versus long-term EPS growth at 0.9x.
" 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. 9x," Black tweeted. 8x.
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. 9 billion. 7 billion, which would be up 236% year-over-year.
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. 24 on Sept.
2, the day of third-quarter earnings. 74 the following morning. 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