Morningstar Rating

Stock Research and Analysis

by Brian Colello, CPA

Bulls Say

Broadcom is the market share leader in providing chips for technologies such as enterprise networking, set-top boxes, and mobile connectivity functions.
Broadcom has demonstrated proficiency for integrating various functions onto a single chip, which ultimately enables the development of advanced devices like smartphones and tablets.
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 

Bears Say

Broadcom tried and failed to build a sustainable wireless baseband business, and it remains to be seen whether the lack of a robust baseband offering will weigh on future wireless connectivity chip sales.
Broadcom has relatively high customer concentration in wireless connectivity products, and design losses in products like Apple’s iPhones or iPads could be damaging blows to the company.
Broadcom is an industry leader in TV set-top box system-on-chip solutions, but the rise of cord-cutting and over-the-top TV streaming poses a risk to future TV STB sales. Read more 


We consider Broadcom to be good stewards of shareholder capital, and we approve of the firm’s pending move to sell itself to Avago in a $37 billion deal that will likely represent a solid, but not spectacular, haul for shareholders.
On a stand-alone   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 

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