Broadcom Inc. (AVGO Quick QuoteAVGO - Free Report) shares soared 4.3% in the last trading session to close at $557.12. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 20.2% loss over the past four weeks.

The upswing in Broadcom's share price can be attributed to a positive report from Piper Sandler. The research firm cited strong semiconductor demand for cloud computing and hyperscale computing as major source of growth for Broadcom.

The company continues to benefit from strength across both Semiconductor solutions and Infrastructure software verticals. Synergies from acquisitions of CA and Symantec’s enterprise security business are key catalysts.

This chipmaker is expected to post quarterly earnings of $8.15 per share in its upcoming report, which represents a year-over-year change of +23.3%. Revenues are expected to be $7.61 billion, up 14.3% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Broadcom Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on AVGO going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>