Chip giant Broadcom (NASDAQ: AVGO) has rebounded sharply after AI stocks tanked following the midterm election results. In fact, after shares dropped 10.4% in one day, AVGO gained more than 18% in the next four trading sessions. This lifted its shares above their price before the midterm reaction.
Given the stock’s strong recovery, some investors may be asking whether Broadcom’s rally can continue. The recent sell-off shows that it is very difficult to predict near-term stock price movements, but several factors support Broadcom's long-term outlook. At the same time, investors should be aware of the key jurisdictions where data center opposition could have the most negative impact on the AI trade.
