Signal: This Red-Hot Nvidia Competitor Has Room to Run

Broadcom Inc (AVGO) stock is finally cooling off today, with the shares last seen down 2.2% at $338.18 after five-straight wins. The semiconductor giant, which has become a key AI player, gapped to a record high of $356.34 on Friday following strong fiscal third-quarter results. Despite a 46% year-to-date lead, there might still be some upward momentum left for the stock heading into the fourth quarter. 

The shares are hanging out around their all-time highs despite today's price action, trading above their Friday lows. This peak comes amid low implied volatility (IV), per its Schaeffer's Volatility Index (SVI) of 36%, which ranks in the low 2nd percentile of its annual range. Such a signal has occurred nine other times over the past five years, after which AVGO was was higher one month later 78% of the time, averaging a 3.8% gain.

As seen above, the 50-day moving average and $280 level linger below to prop up the stock in the event of some consolidation. AVGO has also broken above pressure at the $320 level, which could flip into a support.