Trading Opportunities in Broadcom (AVGO) & Nvidia (NVDA) Right Now…

Historical Gains in Semiconductor Companies in 2023

Last week, I wrote about the many companies appearing right now on my Run into Earnings scans as high probability, pre-earnings longs. 

Broadcom (AVGO) and Nvidia (NVDA) are two of those companies. These two companies have been some of the most talked about stocks this year due to their almost unbelievable rises in share price.

Nvidia is up a shocking 217% year-to-date (YTD), after trading into the depths of despair, with even Cathie Wood bailing on the stock at the end of last year. Broadcom has emerged as a phenomenal name in the space, finally getting the attention it deserves. It’s up 62% YTD, and while I’ve been a fan of the stock for a while, holding it in my long-term portfolio, I still believe it has more room to run.

Back in February of this year, I joined my friend Charles Payne, and we discussed a buying opportunity I picked in AVGO. Learn more in the clip below:

Danielle Shay - Charles Payne - AVGO Buy Earnings
On February 27th, I called Broadcom a fantastic buy-the-dip opportunity just before reporting earnings. It now trades at $897 a share. Click the image above to see the full segment!

I stand by everything I said back then. And, Broadcom has made a fantastic run since then, but that doesn’t mean the opportunity is long gone!

So, you may ask, “How can you still like these stocks after these big runs?”

Bullish Pre-Earnings Patterns

Well, it’s all about patterns, probabilities, and, more importantly, your timeframe combined with how you’re trading it. It’s one thing to call a long-term investment buy right now, and it’s another thing entirely to say a stock is suitable for a trade.

I am not adding to my current shares in both of these names after this historic rise, but I will still trade them as long as the relative strength and patterns hold up.

This is because the long-term patterns tell me that I have a statistically significant timeframe to trade these tickers before earnings.

The massive move this year helps instead of being a hindrance in both names, and that’s because the added exuberance can lead to bullish price action in anticipation of an earnings report.

Learn more in my detailed video below:

Semiconductor Strength

With the continued strength we see in the semiconductor space due to strong technical patterns, focus on AI, and solid fundamentals, the semis have been a fantastic spot to focus for traders this year! Especially as an options trader, it’s essential to focus on pockets in the market in which you can time and trade greater than expected moves. After all, options work best in these moments!

Are you trading NVDA and/or AVGO? Send me a question, or make a comment below my video on Youtube, and I’ll get back to you with my response!

 

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