As with previous separate chapters following the chapter breaks of the King James Version, this chapter is part of a continuous chapter in the 1830 version of the Book of Mormon. This prophecy is a continuation of the time when Jehovah is discussing the coming reversal of fortunes for Israel. Where there had been destruction, there will be recovery and even greatness.
One of the earlier prophecies is Isaiah 6:13 (or 2 Nephi 16:13), which says: “But yet in it shall be a tenth, and it shall return, and shall be eaten: as a teil tree, and as an oak, whose substance is in them, when they cast their leaves: so the holy seed shall be the substance thereof.” The previous chapter invoked the return of a remnant, and here the imagery follows up on the image of the renewal from the stump.
Thus, a rod, or a new shoot, will come from the stump of Jesse and a new branch from the roots. Therefore, after the destruction, there will be a renewal. This verse is typically seen as a prophecy of Christ. When the shoot and branch are personified, the Spirit of the Lord rests upon him and the attributes of wisdom and knowledge will describe him. It is possible that Isaiah is referencing his earlier prophecy in Isaiah 9:6 (or 2 Nephi 19:6), that the child which will be born would be called Wonderful, and Counselor.
This person will judge with a power beyond that of a mortal, thus not with the sight of his eyes, nor the hearing of his ears.