Broadcom Inc. AVGO surged over 5% on Friday, marking its strongest one-day rally in three months and significantly outperforming the broader semiconductor sector as the iShares Semiconductor ETF SOXX posted a modest gain of 0.6%.

The semiconductor giant announced on Thursday its cutting-edge 3.5D eXtreme Dimension System in Package (XDSiP) platform technology.

This breakthrough positions Broadcom as a leader in enabling next-generation custom accelerators (XPUs) for artificial intelligence applications.

By integrating over 6,000 mm² of silicon and up to 12 high-bandwidth memory (HBM) stacks into a single device, the 3.5D XDSiP achieves high-efficiency, low-power computing designed to meet the demands of large-scale AI systems. The technology also marks the industry debut of Face-to-Face (F2F) 3.5D XPU, a significant milestone in semiconductor packaging.

“3.5D integration, which combines 3D silicon stacking with 2.5D packaging, is poised to become the technology of choice for next-generation XPUs in the coming decade,” the company stated.

Yet, other than investor enthusiasm driven by both technological innovation, Broadcom's sharp rally also stands out as a sign of favorable seasonal trends.

Broadcom Historically Surged In December

Beyond the innovation buzz, historical data suggests Broadcom could be gearing up for a strong finish to the year.

Over the past 15 years, the period between Dec. 6 and Dec. 31 has proven highly favorable for the stock.

Broadcom delivered positive returns in 12 of those 15 years, with an average gain of 8.4% during this stretch, as data from Seasonax platform shows.

The most remarkable performance occurred in 2020 when the stock skyrocketed 20.7% in the same timeframe. Only three times — 2011, 2012, and 2015 — did Broadcom post losses in this period.

Investors appear to be eyeing a repeat of Broadcom's historical outperformance, particularly as AI-driven innovation and seasonal tailwinds build a compelling narrative for further gains.

With December already off to a strong start, momentum could carry Broadcom higher as the year-end rally takes shape.

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