Semiconductor industry peers Nvidia, Broadcom and Monolithic Power Systems have etched their names onto the IBD Breakout Stocks Index. Shaking off Tuesday's sell-off in chip stocks, Nvidia stock is again teasing a record high as all three chip leaders continue to work on new breakouts. And Taiwan Semiconductor just found support above its latest buy zone and is now extended.
But these semiconductor names are just some of the names on this stock screen. Updated weekly, the Investor's Business Daily Breakout Stocks Index currently features a host of stocks to watch, including two recent initial public offerings that are testing new buy zones: Viking Holdings and Rubrik.
Nvidia Stock Rebounding To Lead This Breakout Brigade
The Innovator IBD Breakout Opportunities exchange traded fund tracks companies on the IBD Breakout Stocks Index, which currently includes names like Nvidia, Broadcom and Taiwan Semiconductor. Powered by these leaders, the Breakout ETF launched a breakout of its own on Monday and rose again Wednesday. The ETF allows investors to get in on a wide swath of stocks in or near a buy zone with a single trade.
As Nvidia, Broadcom and Monolithic Power Systems look to shake off Tuesday's setback and break out, investors should note that each of these moves are from later-stage bases. While such setups can lead to big gains, they do entail more risk than breakouts from early-stage bases.
After finding support at its 50-day moving average earlier this month, Nvidia stock has crafted a third-stage consolidation pattern with a 140.76 entry. Up 3% Wednesday, the artificial intelligence powerhouse currently trades 4% shy of that mark.
Reflecting how stocks often travel in groups, Broadcom stock is teasing a 185.16 buy point in a third-stage pattern as it finds support at its 21-day exponential moving average. Meanwhile, Monolithic Power Systems targets a 959.64 entry in a third-stage base. Following Tuesday's ASML-driven sell-off in chip stocks, MPWR stock found and held support at its 50-day line on Wednesday.
All three stocks hail from the fabless semiconductor group, which ranks No. 10 among the 197 groups IBD tracks.
See Who Joins Nvidia, Broadcom On The IBD Breakout Stocks Index
Two Breakout IPO Stocks To Watch
Shares of newer initial public offerings can be volatile. Both Viking Holdings and Rubrik reinforce that point. But IPO breakouts can also spark impressive gains for investors that follow sound rules on how to buy stocks and when to sell stocks.
Viking Holdings, which joins Nvidia stock on IBD Leaderboard, had made an impressive — albeit rocky — run since going public in May. It provides destination-focused journeys on rivers, oceans and lakes around the world. Viking has sailed into buy range after weathering a stormy summer.
Earlier this month, Viking Holdings cleared a 37.25 buy point in a first-stage base and remains in buy range. While Nvidia and Broadcom fell Tuesday, shares of VIK rose nearly 2% in above-average volume. Viking Holdings rose again on Wednesday, closing just below the very top of its buy zone.
Cybersecurity firm Rubrik has seen its share of volatility since its IPO in April. But the stock has also shown signs of strength and resilience. Last week, the Palo Alto, Calif.-based company bolted back above its 10-week line. That set up a first-stage base with a buy point of 40. After three down sessions, Rubrik now stands 3% shy of that mark.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF is from Innovator Capital Management. As with other ETFs, it allows you to invest in the entire index as well as buy individual stocks like Nvidia. Learn more here about the ETF and Innovator.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
