Public trading strategy
Broadcom lands huge OpenAI chip deal — buy the stock as it challenges Nvidia
Thesis
Broadcom has been struggling to find its footing recently, but landing a high-profile partnership with OpenAI to build custom chips is exactly the kind of catalyst that can turn a stock around. This positions Broadcom to take market share in the artificial intelligence space, which has been heavily dominated by Nvidia. As tech investors look for the next big AI winners beyond the usual suspects, this news gives them a strong reason to buy Broadcom.
Strategy approach
Build a momentum strategy that enters long AVGO on H4 when MACD crosses above the signal line and volume is 1.5x greater than the 20-day average. Exit when price closes below the 50-day SMA or after a 30-day max hold.
Markets and timeframes
AVGOH4