After a period of volatility, Broadcom (NASDAQ: AVGO) stock has started to recover its price, advancing by over 6% since Nancy Pelosi, the Former Speaker of the United States House of Representatives and a prime stock trader in the U.S. Congress, purchased it in late June.
As it happens, AVGO shares were recording mixed movements after the high-profile stock purchase, but now the experienced stock trader is back in the green on her bet, which has soared from $159.22 on June 24 to the current price of $168.34, or by 6.03%, according to the data on September 20.
In other words, a copy trader who may have used a signal from Finbold’s Congressional trading radar and bought AVGO shares in the amount of, say, $1,000 at the same time as Pelosi made her purchase would have turned into about $1,060.30.
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Pelosi’s Broadcom purchase
As a reminder, Pelosi purchased up to $5 million worth of AVGO call options in late June, and in mid-July, news broke out that Broadcom was in talks with OpenAI – the company behind the leading artificial intelligence (AI) platform ChatGPT – about developing a new AI chip, signaling bullish future.
However, the AVGO stock’s weak performance after the high-profile purchase sparked speculation that the queen of politician trades might be losing her stock market savvy, as some of her other bets also seemed misplaced. That said, the recent advances by Broadcom shares might be proving the opposite.
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What’s more, William Blair has recently initiated its coverage of Broadcom stocks, with no lower than a ‘buy’ rating, expecting to see “room for continued steady growth going into fiscal 2025 and 2026” for its AI revenue, driven, in part, by growing demand for custom chips.
Broadcom stock price analysis
Currently, the price of AVGO stock stands at $168.82, reflecting a 0.30% increase on the day, an advance of 2.95% across the past week, an accumulated gain of 1.66% over the month, and a growth of 55.28% on its year-to-date (YTD) chart, as per the latest data.
All things considered, despite what seemed like a misplaced bet by Pelosi, Broadcom stock is showing signs of bullishness, justifying once again her reputation as a stock market genius. Having said that, doing one’s own research, including informing oneself on things like AVGO earnings date and similar, instead of blindly following politicians, is critical when investing.
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