Broadcom (AVGO 3.10%), the specialty chip company that's at the forefront of the artificial intelligence (AI) revolution, was outpacing many other companies on the stock market Monday. Its shares were trading nearly 3% higher in late-session activity thanks in no small part to inclusion on an elite list compiled by a researcher. By contrast, the S&P 500 index was only up by 1.3% at that point.
Making an elite list
That morning, UBS selected 15 out of 85 stocks filtered by its proprietary screener to be top picks. Specifically, it feels that such picks are in the upper 25% of companies in their peer group in terms of growth and the quality of their operations.
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One of them was Broadcom, which in terms of market capitalization is the No. 2 out of the chosen stocks (first place belonged to Google parent Alphabet).
Broadcom is on many analyst and investor watch lists due to its position as a key supplier of the chips that power AI functionalities. There is a deep, almost inexhaustible demand for such technology at the moment, and that's helping to power the company's fundamentals notably higher.
A tech trend that really has legs
We shouldn't count on that trend sputtering or even slowing down to much of an extent. Late last year CEO Hock Tan opined that the thirst for AI could drive the processor market for that segment to $60 billion and $90 billion in sales within a few short years. Considering that Broadcom's already-impressive take from such goods was slightly over $12 billion, it's standing in front of a huge opportunity.
