These 2 chip stocks were added to Deutsche Bank’s list of top tech picks

This Deutsche Bank "top pick" designation provides a critical fundamental tailwind for Broadcom (AVGO) and Applied Materials (AMAT), countering recent institutional profit-taking narratives seen in the broader megacap tech space. While AMAT’s MACD confirms bullish momentum, its RSI of 68.72 approaching overbought territory and sub-average volume suggest a potential consolidation phase; traders should monitor the $340 support level to avoid a liquidity trap. Conversely, AVGO shows a constructive technical setup with a bullish MACD crossover occurring at neutral RSI levels, indicating a stronger trend-continuation profile compared to AMAT. Fundamental data from recent 10-Qs supports this growth narrative, as both firms demonstrate high operational leverage tied to the AI infrastructure super-cycle. Investors should look for entry into AVGO on any pullback toward its 20-day moving average, while treating the current AMAT price as a "wait-and-see" zone until volume confirms a breakout above recent resistance. The confluence of institutional endorsement and underlying secular AI demand suggests a medium-term upward bias, provided market volatility (ATR) remains contained within the current $12–$16 range.