[News Terms] 'Batman' to Lead US Stock Market in 2025

New Coined Term Following M7 That Heated Up US Stock Market Last Year
Semiconductor Design Specialist 'Broadcom' Added
8 Companies' Stock Price Increase Rate Averaged 74% Last Year

Investment banks on Wall Street in the United States are focusing on BATMMAAN, which is expected to lead the U.S. stock market in 2025. This new term follows the 'Magnificent 7 (MAGNIFICENT 7·M7),' the large tech stocks that heated up the U.S. stock market last year, reflecting recent market changes analyzed by investment banks.

BATMMAAN refers to eight major U.S. tech stocks, combining the first letters of Broadcom, Apple, Tesla, Microsoft, Meta, Alphabet, Amazon, and NVIDIA. It is a term that adds 'Broadcom' to the existing M7, also known as M8.

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Broadcom, a U.S. semiconductor design specialist, has rapidly emerged as a rival to NVIDIA's graphics processing units (GPUs) by introducing the AI accelerator XPU. While NVIDIA's GPUs are general-purpose, Broadcom's XPU is a type of customized semiconductor (ASIC). Broadcom supplies customized AI semiconductors at affordable prices to big tech companies such as Google, Meta, and ByteDance.

Broadcom's market capitalization surpassed $1 trillion for the first time since its establishment on the 13th of last year (local time), after its stock price surged more than 24% during the trading session. It became the ninth U.S. company to reach a market cap of $1 trillion.

The strong Q4 earnings announced after the market closed on the 12th had a significant impact. Fourth-quarter revenue increased by 51% compared to the same period in 2023, and earnings per share (EPS) exceeded market expectations at $1.42 versus the forecast of $1.38. Annual revenue from the AI segment recorded $12.2 billion (17.52 trillion KRW), a 220% increase compared to the previous year.

Broadcom CEO Hock Tan raised expectations for future performance after the earnings announcement, stating, "We are developing AI semiconductors with Google, Meta, and ByteDance," and added, "Each of them is expected to use about one million customized AI chips we create in their data centers by 2027."

Reuters Yonhap News

There have been various terms referring to these major U.S. tech stocks over time. Starting with 'FANG' in 2013, which referred to Facebook, Amazon, Netflix, and Google, the term evolved into 'FAANG' with the addition of Apple, which led the smartphone market. The past eight years until the COVID-19 pandemic were the heyday of 'FAANG.' The proportion of 'FAANG' companies in the total market capitalization of the U.S. Standard & Poor's (S&P) 500 reached 19.2%.

During the COVID-19 pandemic, the term 'MANTA' gained attention, referring to Microsoft, Apple, NVIDIA, Tesla, and Alphabet. Global investment bank Goldman Sachs explained in December 2021 that these five companies accounted for 51% of the S&P 500 index's rise since April 2021, analyzing that "FAANG is fading, and the MANTA era has arrived." As AI became dominant, the term M7 emerged in 2023. This year, with the addition of Broadcom, BATMMAAN appeared.

The stock price growth rate of BATMMAAN is remarkable. From early last year to December 30, it rose by an average of 74%. By company, Broadcom increased by 146%, Apple by 29%, Tesla by 75%, Microsoft by 15%, Meta by 66%, Amazon by 50%, Alphabet by 35%, and NVIDIA by 174%.