Shares of semiconductor company Broadcom (NASDAQ: AVGO) rose 3.9% on positive AI news. Microsoft (NASDAQ: MSFT) may transfer its custom AI chip business from Marvell Technology (NASDAQ: MRVL) to Broadcom, causing Marvell stock to drop over 7%.

Investing in Broadcom based on unconfirmed rumors is risky. Priced at over $1.8 trillion, Broadcom stock is trading at 74 times trailing free cash flow and 97.5 times trailing earnings, with analysts predicting 31% annual long-term earnings growth.

Before investing in Broadcom, consider the top 10 stocks recommended by The Motley Fool Stock Advisor team. The average return of their recommendations is 991%, significantly outperforming the S&P 500. Join Stock Advisor to access the latest top 10 list for potential monster returns.

Read more at Nasdaq: Why Broadcom Stock Popped on Monday