Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Broadcom Corporation (BRCM): Right Time, Right Stock

Page 1 of 2

China is the largest smartphone market and Broadcom Corporation (NASDAQ:BRCM) is working with China Unicom to introduce a smartphone priced below 600 yuan, roughly equivalent to $97. With the company making significant benefits in a niche industry, is now the right time to buy this big-cap wonder?

Recent updates

Broadcom Corporation (NASDAQ:BRCM)

With the evolution of mobile devices fast changing to smartphones, Broadcom Corporation (NASDAQ:BRCM) continues to benefit from having a widespread presence in the market. The company’s latest strategy involves forming partnerships with local carriers and handset makers in emerging markets. The fierce rivalry of Apple Inc. (NASDAQ:AAPL) and Samsung handheld products, such as the iPhone, iPad and the Galaxy line of devices, feature chips from Broadcom in their operations. As with almost every industry today, short-term performance and fate rests with China’s growth and prospects, and semiconductors are no different.

Over the past 10 years, Broadcom Corporation (NASDAQ:BRCM)’s performance is head and shoulders above its rivals. New technologies such as 5G, NFC, DOCSIS 3.1 and automotive Ethernet are allowing the company the opportunity to flex its financial muscle not just geographically, i.e. in emerging markets, but also in well-developed markets. The interesting transformation in the company’s balance sheet for 2012 was the 100% increase in its intangible assets. This helped Broadcom to create value for its business assets and economic benefits for its shareholders. Furthermore, the company has had positive free cash flow growth over the past six years.

Growth potential

Broadcom Corporation (NASDAQ:BRCM)’s solution for most of its prospective growth lies in innovation. Recently, the company launched the world’s highest performance multi-core communications processors – the XLP900 Series. Broadcom has taken this initiative while keeping in mind that the growth potential that these high-speed processors bear will depend on the availability of high-speed 4G LTE/LTE Advanced services. The first-mover’s advantage lies with Broadcom for the future generation of devices.

While there are difficult times in China, Broadcom Corporation (NASDAQ:BRCM)’s offerings of multiple products in geographically diverse markets will allow the company to offset some of the macroeconomic brunt. While its connectivity chips for mobile devices will continue to do well in developing countries, the company also has a solid footing in the form of research in a cooperation with the large smartphone producer Samsung. Moreover, the company’s offerings include set-top boxes and the introduction of 4K x 2K HD display televisions.


In the semiconductor industry, Intel Corporation (NASDAQ:INTC) and Texas Instruments Incorporated (NASDAQ:TXN) are the companies which provide Broadcom Corporation (NASDAQ:BRCM) stiff competition.

Intel Corporation (NASDAQ:INTC)’s semiconductor products primarily cater to different technological markets than Broadcom’s, yet these two remain fiercely competitive in their fields. Two-thirds of Intel’s revenue and a greater percentage of its profits come from PCs. The chip maker enjoys an 80% market share for desktop chips and an 87% share for laptop chips.

However, it has just 1% of the market for tablets and even less for smartphones. With the advent of cellphones and tablets, Intel is vulnerable due to its reliance on personal computer and laptop sales. While the company is investing heavily in its ‘Atom’ processors for mobile and tablet use, these chips have still not been adopted by the majority of smartphone and tablet producers.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!