Nvidia, Broadcom Eye Breakouts. These 2 IPOs Join In.

Semiconductor industry peers Nvidia (NVDA), Broadcom (AVGO) and Monolithic Power Systems (MPWR) have etched their names onto the IBD Breakout Stocks Index. With Nvidia stock testing a record high, all three chip leaders continue to work on new breakouts, although ASML (ASML) threw the sector for a curve Tuesday. The ASML news also pulled chipmaker Taiwan Semiconductor (TSM) off the all-time high it teased on Monday.

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 (VIK) and Rubrik (RBRK).

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Nvidia Stock Battles To Lead This Breakout Brigade

The Innovator IBD Breakout Opportunities (BOUT) 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 is up again early 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. Edging higher Wednesday, the artificial intelligence powerhouse currently trades 6% 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 hit 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 has held support at its 50-day line.

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 is up again on Wednesday, teasing 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. 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.

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