Broadcom is the market share leader in providing chips for technologies such as enterprise networking, set-top boxes, and mobile connectivity functions.
Both consumer demand and technological innovation are pushing converged devices, such as the Apple iPhone. Broadcom has demonstrated proficiency for integrating various functions onto a single chip, which ultimately enables the development of these devices.
Broadcom has an extensive R&D staff, as the majority of its employees work in R&D. This impressive human capital should help the firm develop and integrate new technologies. Read more
Broadcom had a very generous stock compensation program in prior years, which ate away at operating margins and diluted shareholder equity.
Broadcom's emphasis on mobile chips pits the firm against titans like Qualcomm in a ferociously competitive market.
Although the company has made some shareholder-friendly moves, such as paying out a dividend, in recent years, the company's financial results and reputation remain tarred from some very public stock-option backdating scandals. Read more
Some may consider Broadcom to have poor corporate stewardship, not because of the current management team, but because of the less-than-stellar reputation earned by its predecessors. We like the current management team's recent moves to take more shareholder-friendly Read more
Broadcom designs and markets a wide portfolio of digital semiconductors. Incorporated in 1991, the company is primarily focused on three end markets: networking; broadband; Read more