In a large pot, heat olive oil over medium heat. Sauté onion and garlic for 3–4 minutes until fragrant and soft.
Stir in taco seasoning and diced tomatoes with green chiles. Simmer for 2–3 minutes.
Add chicken broth and shredded chicken. Bring to a low boil, then reduce to a simmer for 10 minutes.
Stir in softened cream cheese and heavy cream until fully melted and combined. Simmer for another 5 minutes.
Season with salt and pepper to taste. Serve hot with your favorite keto toppings like avocado, shredded cheese, or sour cream.