What happened

Shares of Broadcom (NASDAQ:AVGO) rose 12.6% in September, according to data from S&P Global Market Intelligence. The semiconductor giant started off with solid earnings results, followed by glowing analyst reports.

So what

Broadcom reported 13.5% year-over-year revenue growth in the third quarter, sending bottom-line earnings 22% higher. The revenue figure was just below Wall Street's expectations, but the earnings number came in 3% above the Street target.

Technician using tweezers to install a microchip on a circuit board.

Image source: Getty Images.

Now what

As a leader in storage and network controllers, Broadcom is riding a strong wave of orders from the data center market. To stay atop that wave, and to stay competitive in a market full of drastic changes, the company is investing $3.2 billion a year in research and development.

This stock has gone through some wild swings in 2018, based on a mix of successful and failed acquisition attempts. After September's strong showing, Broadcom's shares have gained a total of 4% in six months and traded almost perfectly flat over the last 52 weeks.

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool recommends Broadcom Inc. The Motley Fool has a disclosure policy.