Wall Street Rebounds as Tech and Bank Stocks Lead Thursday Rally

The U.S. stock market ended its two-day decline on Thursday, posting modest gains as technology and banking stocks surged.

Overall, S&P 500 and NASDAQ increased 0.3% to 6,944 and 23,530, respectively.

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Here is the one-year chart of Broadcom (AVGO) as of December 22, 2025, when the stock was at $341.

Broadcom’s growth remains heavily linked to AI semiconductor demand and custom accelerators.

Last quarter, the company delivered 37% profit growth on a 28% increase in revenue, driven mainly by AI semiconductors which posted a solid 74% revenue growth year over year.

In last quarter’s earnings call, management pointed to robust AI demand and a strong backlog for AI technologies and XPUs (custom accelerators), with $73 billion AI backlog expected to ship over the next 18 months. With this, management expects AI spending momentum to persist into 2026 and account for the majority of its growth.

Meanwhile, infrastructure software growth will continue to be driven by VMWare at a low double-digit rate.

AVGO is part of our Growth Portfolio and Aggressive Growth Portfolio. Broadcom is a key contributor to the AI movement, and its stock should be a core holding for growth stock investors.

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