Forget the Magnificent Seven Stocks, Gary Black Says This Tech Giant Is Cheaper

Future Fund Managing Partner Gary Black is doubling down on one of his favorite stocks in recent weeks, with a call to look at the valuation metrics of the Magnificent Seven stocks and another large technology company, a grouping he calls the "Mag 8."

Mag 8 Valuations

A recent drop in Broadcom Inc (NASDAQ:AVGO) shares after quarterly earnings has left the stock trading at a lower valuation than the Magnificent Seven stocks.

Black highlights the discrepancy in a recent social media post and chart. Here are some of the highlights from the chart:

"The cheapest of the Mag 8 on 2026 P/E vs forward long-term eps growth (PEG) is $AVGO at 0.9x," Black tweeted.

For comparison, Tesla Inc (NASDAQ:TSLA) is the most expensive of the eight stocks with a PEG of 4.8x.

Black highlights Nvidia Corporation (NASDAQ:NVDA) as the best year-to-date performer of the eight stocks, with a low PEG of 1.1.

Tesla, with a high PEG, is the worst-performing Mag 8 stock.

Black on Broadcom Stock

Black recently defended Broadcom stock after shares fell following third-quarter financial results.

The company’s AI-related revenue had Black expecting shares to rebound from the immediate negative reaction.

“As the AI Rev strength becomes clearer to investors, I expect the stock to recover somewhat,” Black tweeted.

Black highlighted Broadcom CEO Hock Tan, who said AI chip demand is higher than what they can currently ship.

Third-quarter AI revenue of $16.7 billion was up 221% year-over-year and beat a Street consensus estimate of $15.9 billion.

Black also highlighted Broadcom’s guidance for fourth-quarter AI revenue to be $21.7 billion, which would be up 236% year-over-year. That total is above a Street consensus estimate of $21.3 billion.

For fiscal 2026, Broadcom now sees AI revenue hitting $58 billion, up from a previous guide of $56 billion. That total would be up 186% year over year.

Broadcom stock closed at $367.24 on Sept. 2, the day of third-quarter earnings. Shares opened at $351.74 the following morning.

Over the last week plus, the stock has somewhat recovered, with shares now trading at $361.12, higher than their opening price after earnings, but still lower than where they were before the earnings print.

Based on earnings forecasts, the stock is cheaper than other Mag 8 names and could still be an option for investors after the post-earnings decline.

Image via Shutterstock