Nasdaq NVDA Nvidia

Fool.com contributor Parkev Tatevosian highlights one growth stock that is likely to join the coveted $1 trillion market capitalization milestone in the coming years.

Arm Holdings (NASDAQ: ARM) went public last week and it may be this year's hottest initial public offering (IPO). The company generates revenue from licensing and royalty deals that it arranges with customers who want to use its designs when making semiconductor chips.

Investors love technology stocks, as their rapid growth and market momentum are undeniably attractive.

In today's video, I discuss the complex relationship between Intel (NASDAQ: INTC) and Taiwan Semiconductor Manufacturing (NYSE: TSM). Check out the short video to learn more, consider subscribing, and click the special offer link below.

What you need to know… The S&P 500 Index ($SPX ) (SPY ) on Thursday closed down -1.64%, the Dow Jones Industrials Index ($DOWI ) (DIA ) closed down -1.08%, and the Nasdaq 100 Index ($IUXX ) (QQQ ) closed down -1.84%. Stocks on Thursday extended Wednesday’s selloff, with the...

Shares of semiconductor firm Broadcom ( NASDAQ:AVGO ) are finally coming down after the stock’s impressive rise in the past year. Though AVGO is pricier now than when it started the year, with a much smaller dividend yield, AVGO stock is still a Strong Buy right now, according to the analyst community. Of course, Broadcom is no Nvidia ( NASDAQ:NVDA ), and it probably never will be one. However, it still has a fantastic, growing software business, a stake in the artificial intelligence (AI) game, and the means to continue impressing investors in future quarters. After the stock's latest slip, I remain upbeat and bullish, like most analysts covering the firm. Undoubtedly, Broadcom's hot run now lies in the rearview, but there's probably still plenty of value (and upside) to be had as the firm continues firing on all cylinders. Add recent insider buying activity into the equation (a director reportedly loaded up on weakness), and it's difficult to throw in the towel on Broadcom stock after its recent September swoon. I view the latest correction in shares as mostly tied to macro factors, rate fears, and the latest round of Fed chatter rather than it being due to something AVGO-related. Fed Chatter Rattles Broadcom Stock and the Rest of Tech The Federal Reserve left interest rates unchanged during its latest meeting this week. But it's standing firm, noting that more rate hikes should be expected moving forward — not what investors wanted to hear. Further, Fed Chairman Jerome Powell also emphasized that rates could stay higher for longer. Such commentary is applying more heat to the 10-year Treasury note, which surged past 4.4%. As you may know, high rates can be kryptonite for high-multiple growth stocks, especially those in the high-flying semiconductor scene. The broader basket of tech was caught up in today’s sell-off, with the Nasdaq 100 ( NDX ) shedding 1.8%, while Broadcom shed 2.67%. Still, Broadcom stands out as one of the companies that won't be knocked on the seat of its pants as semiconductor demand looks to stay robust going into year's end while the AI arms race advances. Undoubtedly, Broadcom's AI exposure is growing quickly. Like Nvidia, it's not just AI "promises" that have helped fuel the stock's rally. The company is already cashing in on the AI boom. Broadcom Stock Looks Interesting as AI Expectations Cool In a prior piece, I noted that Broadcom's AI-related sales are expected to climb by 84% to $7 billion in the next fiscal year. As firms continue plowing money into all things AI, there's a good chance that the rise of generative AI could power sales well above that number, perhaps closer to $8 billion. It's hard to tell, given how fast the AI boom has jolted the semiconductor scene this year. In any case, cooling AI expectations are a good thing for the risk/reward ratio over at Broadcom. We've reached a stage where even massive beats (Nvidia's latest quarter was incredible, but it wasn't as effective in driving shares higher) can't keep a stock flying higher. That's what happens when a trade gets too crowded and more than just perfection is expected. At current levels, Broadcom stock is hardly expensive at 24.9 times trailing price-to-earnings, well below the semiconductor industry average of 32.7 times. This is a modest multiple that's not indicative of outlandish expectations, in my opinion. Further, the 2.2% dividend yield is also a nice, appreciated addition for investors willing to hang onto shares for the long haul. Finally, it's also a good sign that there's a notable director, Kian Low, who's willing to eat his own cooking. Low reportedly bought 11,000 AVGO shares bought for an average price of $872 and change. At around $808 per share, Broadcom certainly looks like a tempting AI sleeper pick. Is AVGO Stock a Buy, According to Analysts? On TipRanks, AVGO stock comes in as a Strong Buy. Out of 18 analyst ratings, there are 16 Buys and two Hold recommendations. The  average Broadcom stock price target is $981.81, implying upside potential of 21.5%. Analyst price targets range from a low of $900.00 per share to a high of $1,050.00 per share. The Bottom Line on AVGO Stock It's hard not to like Broadcom stock while it's fresh off a correction. Analysts still like it, and expectations don't seem all that outlandish, at least compared to other 2023 AI winners like Nvidia. At this point in the AI boom, it seems ill-advised for firms to pull back on AI spending if they wish to stay competitive, even with rates slated to stay elevated. Therefore, I'd look for AI upside to help drive shares toward $1,000 Disclosure 

Wall Street tanked in a broad sell-off on Thursday, as investor risk appetite was dashed by worries that the Federal Reserve's restrictive monetary policy will remain in place for longer than anticipated.

Wall Street tumbled on Thursday, with investor risk appetite dampened by worries that the Federal Reserve's restrictive monetary policy will remain in place for longer than anticipated.

Wall Street tumbled on Thursday, with investor risk appetite dampened by worries that the Federal Reserve's monetary policy will remain restrictive for longer.

CyberArk CYBR announced that its client, Accenture ACN, is expanding the use of CYBR's Identity Security Platform by adding CyberArk Privileged Cloud to its toolkit.

Cisco Systems CSCO is set to acquire Splunk SPLK for roughly $28 billion, which equates to $157 per share. The buyout will help Cisco offer solutions that detect threats faced by organizations and respond to threat prediction and

Of the top 100 unusually active put options in Wednesday trading, 56 were in the money. If you’re into income with your puts, here are three worth selling for potential cash.

The S&P 500 and the Nasdaq dropped to a more than one-month low on Thursday as a jump in Treasury yields knocked down growth stocks after the Federal Reserve signaled another rate hike this year.

Juniper Networks, Inc. JNPR recently introduced cutting-edge features in its Apstra software solution to improve the management of private data center infrastructure. This will likely reduce the complexity in data center operation

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P U.S. Growth ETF (Symbol: IUSG) where we have detected an approximate $92.3 million dollar inflow -- that's a 0.7% increase week

Akamai Technologies, Inc. AKAM recently announced that it has collaborated with Corero Network Security to enhance the capability of DDoS (distributed denial of service) protection technology. The partnership aims to boost the rel

Some of the shine is wearing off shares of Nvidia and other U.S. semiconductor companies after a stunning 2023 rally, as investors weigh steep valuations, rising Treasury yields and signs of industry unease.

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CrowdStrike CRWD has unveiled the latest update, Raptor, for its Falcon Platform. This new update combines CRWD's Extended Detection and Response (XDR) capabilities with generative artificial intelligence (AI) to enhance cybersecu

Nasdaq led declines in key Wall Street indexes on Thursday as a jump in Treasury yields knocked down growth stocks after the Federal Reserve signaled that another rate hike was in the offing this year.