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:
| STOCK | YTD RETURN (AS OF 9/8) | 2026 P/E | 2026 PE TO 5-Year EPS GROWTH |
| NVDA | +20.2% | 25.1x | 1.1x |
| GOOGL | +5.8% | 17.7x | 1.1x |
| AAPL | +16.1% | 35.4x | 3.7x |
| MSFT | +1.6% | 26.5x | 1.4x |
| AMZN | +9.2% | 19.9x | 1.5x |
| META | +6.8% | 18.9x | 1.3x |
| TSLA | -17.9% | 222.2x | 4.8x |
| AVGO | +5.1% | 28.0x | 0.9x |
"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.
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