What’s The Next AI Winner After Broadcom?

Shares of Broadcom, Inc. (NASDAQ:AVGO) closed at $250 Monday, up nearly 40% since the company reported earnings last week. Broadcom is a major supplier of custom chips and interconnects for AI workloads in datacenters. As such, it has profited from the AI boom. 

Looking For Pin Action 

“Pin action” is a phrase traders borrowed from bowling. It refers to the knock-on effects one can find after a big movement in a particular stock. In the case of Broadcom, we’d expect to see pin action in the AI sector, and we’ve seen some already. In a post on our trading Substack on Monday, we shared four trade ideas, three of which had an AI angle. 

Our Four Trade Ideas

As we described them there: 

One Winner Out Of The Gate

Trade idea #3 was buying the $30 strike calls expiring on January 17th on Asana, Inc. (NYSE:ASAN), for $0.25. Asana runs a work management platform that uses AI to automate repetitive tasks and reduce workflows. The stock spiked nearly 14% on Monday. That enabled us to cash out half of our calls at a nice profit on the same day. 

For Monday’s other AI trades, you can click on our trade alert above. And if you’d like a heads up when we place our next one, you can subscribe to our trading Substack/occasional email list below. 

If You’re More Concerned With Downside Risk

As a reminder, if you are concerned about downside risk, you can download our optimal hedging app by aiming your iPhone camera at the QR code below. You can also download it by tapping here if you are reading this on your iPhone. 

And if you’d like a heads up when we place our next trade, you can subscribe to our trading Substack below. 

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