Semi Mania Please click here for an enlarged chart of Broadcom Inc (NASDAQ: AVGO ). Note the following: This article is about the big picture, not an individual stock. The chart of AVGO stock is being used to illustrate the point. Broadcom is a semiconductor company that has diversified into software. AVGO stock has run up primarily because of its custom AI chip offerings. The chart shows AVGO stock ran up going into earnings. The buying was mostly from the momo crowd. Momo gurus were predicting blowout earnings from Broadcom and the stock going to the moon after earnings. We previously shared with you that earnings estimates are very high and there is a fair probability of disappointments. The chart shows a big drop in AVGO stock after earnings. This morning, the momo crowd is aggressively buying AVGO stock after the big drop. Prudent investors should carefully watch to see if AVGO stock breaks below zone 1 (support), shown on the chart, or rebounds on momo crowd buying. In the early trade, most semiconductor stocks have opened significantly lower. However, the momo crowd is aggressively buying the dip. As a reference, Direxion Daily Semiconductor Bull 3X ETF (NYSE: SOXL ) closed yesterday at $280.54. This morning, it has traded as low as $240.11. Prudent investors should carefully watch how SOXL behaves. Here are key pieces of data about Broadcom earnings, so you are can develop a good understanding of what is going on: Revenue rose by 48% to $22.2B vs. $22.1B consensus. Whisper numbers were north of $24B. AI semiconductor revenue came at $10.8B vs. $10.7B consensus. Whisper numbers were north of $13B. The company is projecting AI semiconductor revenue of $16B for fiscal third quarter vs. $17.2B consensus. Whisper numbers were north of $20B. EBITDA guidance came at 68.0% vs. 69.1% consensus. Prudent investors need to remember stocks move based on the difference between real reported numbers and whisper numbers. Whisper numbers are the numbers analysts privately ... Full story available on Benzinga.com