Broadcom thriving. Weak growth for Aramco.

The success of Broadcom has been so great in 2024, that even rumors have emerged that the company was considering a takeover of its rival, Intel. The artificial intelligence boom has allowed Broadcom to soar to a $1 trillion market capitalization. Even though Broadcom’s CEO has dismissed the prospect of a takeover bid for Intel, simply the fact that the rumor emerged and it was part of the news conversations in December 2024, reveals the impressive success that Broadcom has been experiencing.

Tuesday, 21 Jan 2025 was not a good day for the Saudi Arabian Oil Company (Aramco) in the stock market. Saudi Aramco's beta (5 year) is 0.19, revealing its low volatility. This could be expected because Aramco is in the utilities sector. It is known that utilities tend to perform well during recessions; and utility stocks tend to have a poor performance during times of economic growth. The current situation in 2025 is not a recession and the economic trends seem to suggest economic growth. That is not the best scenario for Aramco to thrive. It is accepted that the economy currently faces persistent problems, but Trump has taken office receiving a prosperous economy from his predecessor.