Including Nvidia, Alphabet and Tesla, none of the Magnificent Seven members has pulled off this feat, but fellow artificial intelligence giant Broadcom has: Broadcom stock has made the list of new buys by the best mutual funds for five straight months.
The AI semiconductor designer and Nvidia industry peer has also etched a spot on Investor's Business Daily's Leaderboard. Broadcom stands poised to launch a fresh breakout to an all-time high.
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Broadcom Rides Wave Of AI Demand
Headquartered in Palo Alto, Calif., Broadcom supplies Apple and other key companies. It also serves a wide range of dynamic industries such AI, electrification, telecom infrastructure and automation.
In the latest list of new buys by top funds, leading money managers scooped up $1.72 billion worth of Broadcom stock. Nvidia and Alphabet also made the list, as did fellow AI stocks to watch Palantir Technologies and AppLovin.
During its still-alive streak of making this screen for five straight months, Broadcom topped the list in the June report, raking in a whopping $24.49 billion.
One driver of that sustained demand is Broadcom's long track record of strong and steady growth in sales and earnings. Over the last five quarters, the Nvidia rival has delivered sales growth ranging from 20% to 51%. During the same time, earnings growth has come in at 18% to 45%.
In its fiscal third-quarter report released in September, Broadcom posted a 36% jump in earnings per share to $1.69 on 22% revenue growth to $16 billion.
Broadcom Stock Looks To Etch New Breakout
As it flashes multiple signs of technical strength, Broadcom stock is targeting an all-time high.
As shown in IBD Stock Checkup, Broadcom sports a B+ Accumulation/Distribution Rating and a 1.3 up/down volume ratio. Along with Nvidia, it holds the highest-possible 99 Composite Rating.
Trading solidly above its 21-day exponential move average and its sharply rising 50-day line, Broadcom continues to work on an early-stage flat base with a 374.23 buy point. On Monday, the stock reversed lower from the day's earlier highs, but the base remains intact.
Fellow AI juggernaut Nvidia dipped below its 21-day line but remains above its 50-day benchmark as it looks to get back into a 184.48 buy point it cleared earlier. And fellow IBD Leaderboard member Google stock continues to trade right around its all-time high.
Follow Matthew Galgani on X at @IBD_MGalgani.
