#4 - Broadcom (NASDAQ:AVGO)
In June, Broadcom (NASDAQ:AVGO) had a beat on both the top and bottom lines. But what is getting investors excited is that the company is more than a semiconductor company. The company generated over 75% of its business from semiconductors, but that part of the business actually declined by 4%.
But let’s not discount that part of the business. That’s because the company has a three-year partnership with Apple (NASDAQ:AAPL). And that agreement to provide $15 billion in wireless components paid off to the tune of 14% of the company’s revenue.
On the other hand, the company’s infrastructure software business rose 19%. Broadcom is growing this area through acquisition. But it looks like that strategy is paying off. The company’s margins expanded over 10% in the quarter. And a reduction in operating expenses is helping the company’s operating expenses which helped increase its operating margin by 3%.
Although Broadcom isn’t forecasting the novel coronavirus pandemic to have a significant negative affect on its business, CEO Hock Tan has said the company’s revenue forecast could be 5%-10% lower than its prior forecast.
About Broadcom
Broadcom Inc designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software.
Read More - Current Price
- $163.79
- Consensus Rating
- Buy
- Ratings Breakdown
- 25 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $192.79 (17.7% Upside)
