The artificial intelligence revolution took a breather early this year while investors pondered the effects of President Donald Trump's tariffs. Some analysts now say AI is still in growth mode and will be for a long time. Some even say fear of a slowdown in AI is laughable.
On Monday, Broadcom a leading AI-chip provider, got an upgrade for its IBD SmartSelect Composite Rating from 94 to a near-best 97.
Broadcom Stock In Top 3%
The upgrade means the stock is now outpacing 97% of all other stocks in terms of key performance metrics and technical strength.
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Broadcom is trading about 3% above a 185.05 entry from a double bottom. But note that it's a later-stage base, which can succeed but makes it a riskier entry point. Monday afternoon Broadcom stock was up fractionally as the market struggled in early trading but was mixed in the afternoon session.
Broadcom holds the No. 1 rank among its peers in the 36-stock Electronics-Semiconductor Fabless industry group. Memory-chip maker Rambus and Nvidia are also among the group's highest-rated stocks. Nvidia is the acknowledged leader in AI chips, providing processors, software and systems. In contrast, Broadcom offers more custom-tailored AI chips designed to suit each company's individual needs.
Other Ratings Also Glowing
Broadcom stock has a 98 EPS Rating out of 99, which means its recent quarterly and annual earnings growth tops 98% of all stocks. Its Accumulation/Distribution Rating of C shows a roughly equal amount of buying and selling by institutional investors over the last 13 weeks.
The company reported a 45% rise in earnings for Q1, to $1.60 per share. It has now posted accelerating EPS growth for three consecutive quarters. It reported 25% revenue growth to $14.9 billion, still robust although down from 51% growth the previous quarter.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
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