Looking through the latest earnings repot and it just confirms everything we all fear - Broadcom is actually achieving success in artificial intelligence, or at least a version of it that investors are buying into. The stock is surging over 9%, adding a whopping $135 billion dollars in market cap. That's like adding a whole AMD, overnight.

They're taking a huge chunk of the AI pie with their custom ASIC accelerators. There's a rumor that OpenAI is a new customer, and they love nothing more than setting cash on fire in capital expenditures.

On top of that Broadcom is rolling out hardware on a next-generation 2nm node process, which is a generation ahead of what Nvidia is using. This is possible because Broadcom outbid Nvidia and everybody else to be first, giving them a real competitive advantage.

While I wouldn't expect to see Broadcom overtake Nvidia in the near future, it definitely belongs in the Magnificent 7, much more so than trash like Tesla.