Why Broadcom Stock Rallied Today

Shares of Broadcom (NASDAQ: AVGO) climbed connected Tuesday, gaining arsenic overmuch arsenic 6.2%. As of 12:51 p.m. ET, the banal was inactive up 6.1%.

The catalyst that sent the semiconductor specializer higher was awesome quarterly results from different important subordinate successful artificial quality (AI) -- Palantir Technologies (NASDAQ: PLTR).

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Demand for AI is robust

Palantir reported its astir awesome quarterly fiscal study to date, and investors judge this bodes good for Broadcom's ongoing triumph streak.

In the 2nd quarter, Palantir generated gross of $1.94 billion, up 93% twelvemonth implicit year, driving adjusted net per stock (EPS) to $0.41, up 156%.

For context, analysts' statement estimates called for gross of $1.81 cardinal and adjusted EPS of $0.35, truthful Palantir surpassed some estimates by a wide margin.

The results for the company's U.S. commercialized conception led the charge, arsenic gross surged 149% to $764 million, driven by unrelenting request for its Artificial Intelligence Platform (AIP). Results for the U.S. authorities conception were besides robust, arsenic gross grew 90% to $809 million.

So, what does this person to bash with Broadcom?

Broadcom isn't scheduled to study its third-quarter results until Sept. 2, but investors are utilizing Palantir arsenic a proxy for ongoing AI demand. Broadcom is guiding for Q3 gross to emergence 84% to $29.4 cardinal and adjusted EBITDA to summation 87% to $20 cardinal -- awesome results by immoderate measure.

Taken together, the grounds highlights the ongoing beardown request for AI. Finally, astatine 21 times adjacent year's expected earnings, Broadcom is simply a quintessential picks-and-shovels play for those wanting to put successful the AI boom.

Should you bargain banal successful Broadcom close now?

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