Broadcom (AVGO 2.16%) stock is moving higher Wednesday amid some bullish momentum for the broader market and a major valuation milestone for another player in the artificial intelligence (AI) space. The company's share price was up 2.2% as of 12:40 p.m. ET. The stock had been up as much as 2.8% earlier today. Meanwhile, the S&P 500 (^GSPC 0.32%) and the Nasdaq Composite (^IXIC 0.62%) were up 0.2% and 0.6%, respectively. 

The stock market is moving higher today as investors mostly shrug off some trade-related risk factors, and Nvidia's push into a $4 trillion market capitalization may also be helping to lift Broadcom stock. Bullish coverage from an analyst that was published yesterday could also be helping to support gains for the connectivity specialist's share price.

Image source: Getty Images.

Broadcom stock rises as Nvidia sets new valuation record

With its gains today, Nvidia has reached a $4 trillion valuation -- making it the first company in history to do so. Nvidia's graphics processing units (GPUs) have been the most important hardware for the training of AI models, and they've been at the center of a huge boom in data center spending. Meanwhile, Broadcom's position in networking hardware and software has also helped it ride the AI data center wave -- and the two companies are often looked at as performance indicators for each other.

Is Broadcom headed to $330 per share?

In addition to momentum for the broader market and Nvidia's valuation milestone, Broadcom may be seeing continued valuation benefits from analyst coverage that was published yesterday. KeyBanc recently reiterated an overweight rating on the stock and raised its one-year price target from $315 per share to $330 per share.

The investment firm said that it's seeing signs that demand in AI product categories remains quite strong. As of this writing, KeyBanc's new price target implies additional upside of 19%. If the ramp-up for AI infrastructure continues at a rapid pace, Broadcom should be a major beneficiary.