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Interactive Brokers chief strategist says Broadcom should replace Tesla in Magnificent 7 - CNBC

Published 06/18/2024, 01:38 AM
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Interactive Brokers chief strategist told CNBC in an interview on Monday that he’s in favor of swapping Tesla (NASDAQ:TSLA) out of the ‘Magnificent Seven’ for Broadcom (NASDAQ:AVGO).

Analysts explained that in January, they proposed changing the lineup of the Magnificent 7, which currently comprises Nvidia, Meta Platforms, Tesla, Amazon, Alphabet, Microsoft, and Apple.

Analysts suggest adding Broadcom and ditching Tesla, stating that they feel "vindicated by that recently." They said that the reason they made the suggestion at the time was not just because Tesla was underperforming but because Broadcom "captures the whole zeitgeist of the moment right now."

They add that it is much more of an AI stock, even though Tesla might be one further into the future.

"Broadcom is part of this whole movement," adds analysts. "What we are seeing now is this great combination of MOMO [mystery of missing out] and FOMO [fear of missing out] driving the market higher."

On the other hand, analysts feel Tesla is not part of that movement right now. Overall, analysts say adding Broadcom and removing Tesla "represents us better right now in terms of whats going on."

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