As the Nasdaq composite gaps up to retake its 21-day exponential moving average Monday, Nvidia (NVDA) rival and fellow artificial intelligence giant Broadcom (AVGO) also popped back above that benchmark line as it looks to reclaim a prior buy point.

Broadcom stock has earned a spot on the Investor’s Business Daily Leaderboard alongside AI powerhouses Palantir Technologies (PLTR) and Alphabet (GOOGL). Maintaining its entrenched position among the top AI stocks to watch, Broadcom also joined Nvidia, Alphabet and Apple (AAPL) on the latest list of new buys by the best mutual funds.

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Broadcom Rides Enduring AI Boom With Nvidia, Palantir And More

Showing how key fundamental and technical factors remain strong for bellwether AI stocks, Broadcom shares the highest-possible 99 Composite Rating with Nvidia, Palantir and Alphabet.

In another positive sign of strength, Broadcom and Nvidia both hail from the highly ranked fabless semiconductor group. The industry ranks No. 13 out the 197 industries tracked by Investor’s Business Daily. Top-performing stocks often hail from the top-ranked groups.

Strong and steady growth underlies the performance of and demand for Broadcom stock.

Over the last four quarters, the semiconductor giant has delivered sales growth ranging from 20% to 51%. In its latest report on Sept. 4, Broadcom posted $16 billion in revenue, marking a 22% year-over-year rise.

Earnings growth also has been strong, ranging from 28% to 45% over the last four quarters. In the latest report, Broadcom etched out a 36% gain to $1.69 per share.

When the company next reports on Dec. 11, analysts forecast 24% sales growth to $17.5 billion. Earnings are expected to rise 31% to $1.87 per share. In each of the next two fiscal years, Wall Street sees earnings growth of 38%.

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Broadcom Stock Looks To Bounce Back Into Buy Range

Fueled by a track record of strong growth, signs of demand for Broadcom stock include a B+ Accumulation/Distribution Rating and a 1.1 up/down volume ratio.

On Oct. 28, the stock broke out past a 363.24 buy point in a second-stage cup with handle. After going on to notch a record high, shares pulled back as Nvidia and Palantir began to pull back around the same time.

Broadcom subsequently fell below its 21-day exponential moving average. On Friday, the stock retreated sharply below its 50-day line before shoring up support to end the week above that benchmark. To kick off the new week, Broadcom has jumped back above its 21-day line.

Shares ended Monday’s session 1% shy of returning to the 363.24 to 381.40 buy zone. Meanwhile, Nvidia and Palantir both gapped up to retake their 21-day exponential moving average following last week’s turbulence.

While the strength of AI stocks remains, recent volatility and fears of an AI bubble have investors focused on risk management. Key to that is heeding rules for how to buy stocks and when to sell.

Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.

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