(NASDAQ: AVGO) stock is making big gains in Wednesday's trading. The company's share price was up 10.2% as of 11:45 a.m. ET, according to data from S&P Global Market Intelligence.

Broadcom stock is getting a valuation boost thanks to recent earnings reports from Microsoft and Advanced Micro Devices that bode well for artificial intelligence (AI) demand. The semiconductor hardware and software specialist's valuation is also climbing due to some encouraging news on the geopolitical front.

Microsoft and AMD published quarterly results after the market closed yesterday, and the influential tech players delivered some bullish signals for the broader AI space. On the heels of recent concerns that valuations for Broadcom and other artificial intelligence stocks may have become overheated, yesterday's earnings reports suggested that momentum in the space remains quite strong.

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Source Fool.com