AI Chip Stock Tops Buy Point, As Deals With Silicon Valley Giants Drive Growth

Semiconductor stocks are driving market gains as the chip sector is up sharply year-to-date, and Broadcom’s breakout and strong AI revenue print are fueling bullish momentum across the group. Broadcom reported AI revenue up 106% YoY to $8.4B and forecast $10.7B next quarter, while its stock cleared a 414.61 cup-without-handle buy point and sits in a buy zone to 435.34. IBD highlights technicals — a new relative-strength high and a valid breakout — that support further upside for leading chip names, including Nvidia, which remains a top-rated leader in the group. Analysts expect Broadcom’s earnings and sales to show double-digit gains for the quarter. Overall, technical signals and accelerating AI demand point to continued upside for semiconductor leaders, though the recent rapid run raises the odds of short-term pullbacks.