Is Tesla Still A Magnificent 7 Stock? EV Maker Could Get Bumped By These Companies

Tesla‘s (NASDAQ:TSLA) standing within the Magnificent Seven is in question.

What Happened: The Austin, Texas-based electric vehicle (EV) company now stands at number nine on the list of biggest companies on the S&P 500 index.

Therefore, when looking at the top seven stocks on the S&P 500 index with the largest market caps, then Tesla doesn’t rank.

The Elon Musk-led carmaker’s recent share price slump coincides with a dramatic drop in market cap. Back in November 2021, Tesla stock enjoyed a record of nearly $410 — putting its market cap at $1.31 trillion.

It has been on a broadly downward trajectory ever since. See the chart below.

Tesla’s market cap was slashed in half and now stands at $603.71 billion. The company has also been relegated from seventh to ninth on the mega-cap leaderboard.

But if one were to define the Magnificent Seven as simply the seven biggest and most influential technology stocks, one could argue that other companies are more worthy of the group.

Also Read: Broadcom’s Tech Dominance Affirmed by JPMorgan Analyst; Forecasts Company Will Lead AI and Cloud Revolution

Other Magnificent Contenders

Let’s first look at Broadcom (NASDAQ:AVGO), a major semiconductor designer and manufacturer.

It currently sits with a market cap just a couple of billion dollars below Tesla. The difference is that its shares have been on a long-term incline. Its market cap has more than doubled since the beginning of 2023.

With still a month to go before it reports fourth quarter and annual earnings, consensus expectations are for $10.61 earnings per share during the October-December period, up 2.7% over the previous year, and revenues of $11.27 billion, up 26.4% on the year-ago number.

But 2024 is predicted by many to be the year that artificial intelligence use cases take off and provide huge profits to the companies that supply the powerful processing gear. For the next fiscal year, Broadcom is expected to post earnings per share of $56.59 — up 19% on 2023.

It’s these kinds of numbers that impress analysts such as Morgan Stanley which, this week, added Broadcom to its U.S. Focus List, initiating coverage of the stock with an Overweight rating and a $1,550 price target, indicating 22% upside from the current share price.

Above Tesla On Market Cap

Tech companies aside,…