The chief strategist at Interactive Brokers expressed his preference for trading Broadcom over Tesla among the ‘Magnificent Seven’ stocks during an interview with CNBC. In January, analysts recommended replacing Tesla with Broadcom in the line-up of Nvidia, Meta Platforms, Amazon, Alphabet, Microsoft, and Apple. They cited Broadcom’s alignment with the current market trend and their belief in its potential to capture the essence of the present moment.
The analysts view Broadcom as an AI stock that embodies the prevailing theme of MOMO and FOMO driving the market upwards. They argue that Broadcom reflects the momentum and excitement in the market better than Tesla, which they believe is not currently in line with the prevailing sentiment. Therefore, they stand by their decision to add Broadcom and remove Tesla from the Magnificent Seven, emphasizing that this adjustment better reflects the current market dynamics.
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