Here's What Broadcom Hitting an All-Time High Means for the "Magnificent Seven" and the "Ten Titans" Growth Stocks

Key Points

• Broadcom has become one of the most important companies that’s moving the U.S. stock market.

• Broadcom’s growing AI and infrastructure software segments make it unlike any other semiconductor giant.

• Oracle and Netflix are two other growth stocks worth paying attention to.

• 10 stocks we like better than Broadcom ›

The pressure was on Broadcom (NASDAQ: AVGO) to deliver blowout third-quarter fiscal 2025 earnings on Sept. 4. The semiconductor and infrastructure software giant didn't disappoint -- beating its artificial intelligence (AI) revenue guidance, announcing a $110 billion backlog, and providing upbeat commentary for fiscal 2026. Broadcom stock soared to an all-time high and is now up 49 % year to date.

With a market cap of $1.57 trillion, you may think that such an influential company would be a staple in mega-cap growth stock lists like the "Magnificent Seven." But that group comprises only Nvidia, Microsoft, Apple, Amazon, Alphabet, Meta Platforms, and Tesla.

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The "Ten Titans" expands on the Magnificent Seven by adding Broadcom, Oracle (NYSE: ORCL), and Netflix (NASDAQ: NFLX), providing a more accurate view of the current state of the mega-cap landscape. Here's why the Ten Titans are growing in importance and moving the broader market, and what they mean for your investment portfolio.

Image source: Getty Images.

Time for a Magnificent Seven makeover

The Magnificent Seven was coined by Bank of America analyst Michael Hartnett as a catchy label for the seven biggest technology-focused companies. The term gained traction in 2023 as the Magnificent Seven components were recovering from a brutal sell-off in 2022 in which the Nasdaq Composite lost a third of its value.

The Magnificent Seven gained popularity in lockstep with accelerated growth in AI -- with the release of OpenAI's GPT-4 model and Google Bard (now Gemini) in March 2023 and Nvidia surpassing $1 trillion in market cap in May 2025 as demand for its graphics processing units (GPUs) skyrocketed.

At the end of 2022, the Magnificent Seven had a combined market cap of $6.9 trillion. As of market close on Sept. 5, the group is up 198% to $20.7 trillion. However, the Ten Titans have performed even better, largely thanks to Broadcom, which is up a staggering 573% in that period and has added more than $1.34 trillion in market cap.

Data source: YCharts. Market caps and gain percentages are approximate values due to rounding.

As of the time of this writing, the Ten Titans make up 38.5% of the S&P 500 compared to 33.8% for the Magnificent Seven. And there are plenty of reasons why Broadcom, Oracle, and Netflix can continue to be winning stocks over the long term despite their lofty valuations.

Redefining mega-cap market leaders

While Nvidia is the undisputed leader in power AI models, Broadcom is playing an increasingly important role in the data center value chain with its XPU AI accelerators -- which are ultra-advanced application-specific integrated circuits (ASICs). Broadcom also provides the connectivity to support these XPUs with its Tomahawk switches that connect chips within a server rack, and Jericho ethernet fabric routers, which connect XPUs across multiple data centers. You can think of Tomahawk as the roads within a city and Jericho as the U.S. Interstate highway system. Both play pivotal roles in connectivity.

AI is just one aspect of Broadcom's semiconductor business. It also has an established legacy business in networking, mobile, wireless, storage, and enterprise solutions. But that part of the business is undergoing a period of slowing growth. Broadcom also has a massive infrastructure software arm, led by its acquisition of VMware a couple of years ago. Broadcom is now a highly diversified semiconductor/software hybrid with a diverse array of end markets. And since ASICs are fundamentally different than GPUs, adding Broadcom to the Ten Titans isn't redundant, but rather, provides a more accurate look at the AI landscape. Especially given that hyperscalers like Google, Meta Platforms, OpenAI, and Apple are increasingly turning to Broadcom to make custom chips specifically geared toward their AI applications.

As for Oracle and Netflix, both companies have what it takes to surpass $1 trillion in market cap by 2030 to play a supporting role in the Ten Titans.

Oracle is rapidly growing its cloud infrastructure and application business to support its legacy database software segment. It's a similar dynamic to Broadcom, which has transformed its semiconductor solutions segment with XPUs. However, a key difference is that Oracle is much more aggressive with its capital expenditures (capex), with a capex-to-revenue ratio of 0.37. In fact, Oracle is spending so much on cloud infrastructure that it is taking on debt and leveraging its balance sheet. If it pays off, Oracle could be one of the best-performing Titans for years to come. If it backfires, or Oracle overestimates demand, it could be one of the worst performers.

Netflix has an expensive valuation, but the company has turned into a free cash flow (FCF) powerhouse. Netflix was essentially FCF breakeven from the early 2000s until 2015. It was consistently FCF negative from 2015 to 2020 as the company grew its subscriber base and international footprint. But the stock sold off heavily in 2022 as investors questioned whether its content spending was necessary to retain and grow its subscriber base. But Netflix proved the doubters wrong, releasing hit after hit across a wide variety of genres, justifying subscription price increases. Its FCF growth has been unbelievable, with $19.5 billion in trailing 12-month FCF. The market has taken notice, as Netflix is up over fourfold since the start of 2023.

NFLX data by YCharts.

Netflix provides a helpful, consumer-facing addition to the Ten Titans with resilient FCF. Netflix has become somewhat of a recession-proof business, which should help even out the Ten Titans if there's a cyclical downturn in AI.

Broadcom's leadership is undeniable

Broadcom is now worth over $450 billion more than Tesla and is closing in on Meta Platforms to become the sixth-most-valuable U.S. company.

The Magnificent Seven still has merit, but no top growth stock list is complete without Broadcom.

The company has forced its way into the AI narrative, making it impossible to discuss data center expansion without it.

Should you invest $1,000 in Broadcom right now?

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Bank of America is an advertising partner of Motley Fool Money. Daniel Foelber has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Netflix, Nvidia, Oracle, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.