NVIDIA’s Next Big Rival Is Powering the AI Boom

All right, my last video I made a prediction on Nvidia. I said it was going to go higher and that it was going to be going up against an ascending line of resistance. Now, this particular AI stock might be on decline, but I've got another AI story that could be beginning to ramp up. One that's going to fade and one that might pump. I'm going to share a new pick with you guys today. This is a trade that I've gotten into and I think there's opportunity. There's even the opportunity to get some red candles, but overall I believe it's made a beautiful base and it's getting ready to move and it's a powerful powerful player in the AI story. Welcome to Wall Street. This is the Stocks with Josh show. I want you to make sure to catch my next video. I spent the day looking at those charts and I think I found something in the Bitcoin chart that's speaking to me and I'm getting more confidence on. Uh, I think I have an understanding of what Bitcoin may possibly do next. I recently talked about the fact that Bitcoin had made a higher local high and that it had to continue that trend. I've spent some time charting it out and I'm looking forward to sharing that with you guys tomorrow. Today we're going to be talking about some AI growth stocks and one that is building up for a big move. And of course, Nvidia, which has recently been fading the top, the exact area of resistance that I had pointed out to you guys. Now, before I get into the content, I want to invite you to come join the Stocks with Josh community. I have some really cool tools, and one of them is how I found the stock that I'm going to share with you today. It's called Friendly Patterns, and it identifies bullish setups. And I'm going to show that to you. But before I get into that, let's take a quick peek at the Nvidia chart. In my last video, I talked about Nvidia when it was beneath 235. And I said that it would push up and hit this ascending line of resistance that's gotten two other touches before and that this would likely be an area of resistance. Now, I wanted to identify for you guys today who are in the journey of learning the charts what type of candle this is starting to look like. Now, this week is not finished out. We got a couple more days in it, but this is potentially setting up to become a gravestone dogee. And I just want to remind you that if we do get a break and close beneath this 235, then our next target is going to be a push all the way down beneath 225. So right now the technicals seem pretty easy to read on Nvidia. It looks like it is fading resistance at around 244, the level that I had predicted that we would hit last. All right, the AI story I want to point out to you guys that I found using one of my tools called Friendly Patterns is AVGO. They are an underrated AI champion. They are powering the AI boom with custom chips and networking technology while their software empire generates the cash to fuel its next wave of growth. And what I like about it, it's different than Nvidia, is that instead of it being at all-time highs, it's coming up off the lows. Now, I want to share three facts with you guys from a fundamental perspective that proves that these guys are crushing it. Broadcom's Q3 2026 revenue reached 29.6 6 billion, which was up 86% year-over-year. Its Q3 AI semiconductor revenue hit 16.7 billion, which was up a staggering 221% year-over-year and 54% sequentially, which is the big one. Broadcom generated 13.7 billion in Q3 free cash flow, equivalent to 46% of revenue. And in addition to all of that, management has forecasted approximately 34.8 8 billion in fiscal Q4 revenue, implying a 93% annual growth. I don't think that's all been priced in. Now, many people are calling AVGO the NVIDIA challenger. The reason being is that OpenAI and Broadcom have unveiled their Jalapino inference chip in June of 2026, which is supporting the bullish thesis that Broadcom benefits as AI companies build alternatives to Nvidia's hardware. Now, I want you to take all that into consideration and just recognize that these guys have been building a base. They had run up. They've pulled back. Nvidia had its moment. And as Nvidia's fading, I think some of that profit's going to be taken out of Nvidia and rolled into plays like AVGO. Now, you know that I'm a technical trader and I get my confidence by looking at the charts. Let me show you some very bullish dynamics and setups to AVGO. But first, I'm going to show you what the friendly patterns tool picked up on. Let's go look at that. All right. AVGO was first identified by friendly patterns on October 5th when it picked up on an upward break of a descending channel which you see right here. Now, you don't have to understand how these channels work, but it gives you the clear identifiable target of 406 bucks. So, it basically bounced off 341. It broke out of this channel and we've had ever since clearly defined green stacking candles, one on the other. Now, I'm not going to tell you guys that we won't get a red candle before hitting 406, but that is the candle that you want to buy and you want to add or you want to potentially increase your position on because I believe that this structure is bullish and the AVGO is just beginning to move. Now, on October 5th, when it gave us the breakout of the descending channel, the very next day on October 6th, it identified an inverse head and shoulders pattern. You see the left shoulder, the head, and the right shoulder and the neckline. And that's approximately right around 360. And you see these two higher weekly time frame candles have broken out above that. The second one confirming the last one. And again, we've got this target on that structure to right around 391. So, this tool is very helpful for identifying patterns on stocks that are breaking up or breaking down. So, let's take a minute and go into the AVGO chart. I want to show you a few things. Uh, I've got this snapped with the lines that I think are the most important. Now we do have this confirmation above the yellow moving average line. Previously we had been beneath it. We've had this period of consolidation which is what the friendly patterns identified as a bullish inverse head and shoulders pattern. The neckline is right around 364. We've had two weeks where we're breaking out above it. Now I want to make it clear the current price is at 376 and we could have a back test even as low as 364. This is an area because I believe that this stock is ready to move. This is an area where I would still want to buy. So you might pace yourself accordingly. Maybe if you take some risk, you take it in proportion and DCA into it. Ultimately, when we get above 378, we should get a move up to 385, which would be the fulfillment of this inverse head and shoulders pattern breakout move. Now, I'm not predicting that. I'm simply taking risk on a stock that I believe in. I think we got to trade the range right now. It's clearly broken out of two bullish structures, which gives me the confidence to take some risk on it. You can't be just sitting on the sideline too afraid to invest. Right now, things have been pretty choppy. I had a trade session today where we made a couple calls that didn't work out. And what I can tell you about that is those are the first two trades that I've called out that haven't worked in weeks and weeks and weeks. But I ended up calling out QQQ and Amazon afterwards that went up over 100%. So, it was a good day still. Let me know if you guys played Amazon and QQQ after our live trade session. The market is choppy and in every environment there's opportunity specifically here on AVGO. I think it can continue to climb as Nvidia potentially might fade this top. I'm not saying that Nvidia is not a good investment. I had said to you guys it would go up to that 244 level and then it would likely fade. Now we got to see what it does at 235. Let me know what you guys think about AVGO. Now, my specific play was for LEAP options out to September of 2027. And any red candles that come along, I'm going to add one more of those leaps. I did that with Microsoft and I just closed up that monumental trade that all of you guys saw came to pass. The targets and the price predictions I've made. I believe that this AVGO will be the next big winner that I celebrate, but it could take a little time. October could still be an ugly month. We still have some volatility that would come from the midterm election lingering in the market. All it would take would be one bad news event, which would cause this market to have a rough, rough month. So, I'm prepared for that. We're at the moment, we're doing just fine, and I'm going to continue to put on risk on the names that make sense to me for investments into 2027. AVGO is one of those. Let me know what you guys think about it. Peace and blessings. Have a wonderful day. Take care. Make sure you catch my next video on Bitcoin where I'm going to make a new prediction to you based on all my study and analysis. And I'd love to hear your guys' opinion on it. Peace and blessings. A Wall Street firm [music] has a research desk, a risk desk, and a whole floor full of traders. You have a kitchen table, which makes you the head of research, the entire risk department. It'll come back. And the guy who talks you out of your own stop-loss. That's a lot of jobs for somebody who already has one. Guess what? We've all been there. 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