By Doug Busch
Semiconductor stocks have shown impressive strength in recent months, with broad participation across the sector driving a steady rally. But now the spotlight is shifting back to the megacap leaders, as Nvidia and Broadcom appear poised to rejoin the advance. If these heavyweight names begin to confirm the trend, their rise could add another layer of momentum to an already resilient group and help power the next leg higher in the semiconductor rally.
The VanEck Semiconductor exchange-traded fund is looking for a nine-day winning streak Monday, and it is now well above the $402.60 double-bottom pivot taken out on April 6, with a 6% gap higher.
Within the group, we have seen robust moves from obscure chip players such as Aehr Test Systems, which advanced by 36% and 59% over the last two weeks, respectively. Cirrus Logic is now pushing away from a long 20-month cup-with-handle pivot of $146.98. More familiar names like Intel and Marvel are up an astounding 40% and 50% year-to-date, respectively; this is not a typo. The less recognizable stocks in the group may have held the line while the stalwarts consolidated.
Let's now take a peek at Nvidia and Broadcom. Both are among the top 10 largest companies in the world. Refreshed and ready to rise, they can boost the technology sector, which has been essentially flat so far in 2026.
Nvidia, the only $4 trillion dollar stock on the planet, is up 70% over the last year but has stalled at just a 2% gain over the last three months. The last two weeks have seen back-to-back 6% weekly gains, both of which closed at the weekly range's high.
Looking at its daily chart, the stock has struggled on the ratio chart against rival Advanced Micro Devices since last October. It trades 11% below its most recent 52-week high and could be building the right side of a double-bottom pattern. That base started just above the very round $200 number with a bearish island reversal on November 4, featuring a 4% gap down.
Last week the stock recaptured both its 50- and 200-day simple moving averages and its 21-day exponential moving average, showing excellent momentum. The current six-month digestion followed a strong uptrend, so it is likely to break higher in the near term. Enter here and add to above a double-bottom pivot of $197.73. Look for a move toward $248 by late 2026, a 31% gain from present prices. Remain bullish above $179.
Nvidia was trading around $188 Monday.
Broadcom, a chip company involved in AI, now trades 10% below its most recent 52-week high. Last week the stock screamed higher by more than 18%, its best weekly return in five months. This week it will be looking for its first three-week winning streak since last October.
Peering at Broadcom's daily chart, the stock has traded between the $300 and $400 figures since early last September, influenced by round number theory. A double-bottom base formed, starting with a spinning top near $400 on December 11. The price continued falling until a bullish morning star was completed on March 31, with the stock jumping 5.5% and reclaiming the $300 level. Notice its recent ferocious move higher on the ratio chart against Intel. Broadcom is underperforming, but the stock can be bought on a pullback at $365 after a recent double-bottom breakout above a $353.24 pivot. Look for shares to travel back toward $475 by year end, a 27% gain from current prices. Remain bullish above $345.
Broadcom was trading around $376 Monday.
If the leadership baton is indeed passing back to the megacaps, the semiconductor rally might be entering an even more powerful and sustainable phase.
Doug Busch is the senior technical analyst at Barron's Investor Circle . His technical view is added to stock picks, including those published exclusively for Investor Circle readers. A glossary of technical terms is updated regularly with new entries.
Write to Doug Busch at douglas.busch@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 13, 2026 15:36 ET (19:36 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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