#7 - Broadcom Inc. (NASDAQ:AVGO)
Broadcom Inc. (NASDAQ: AVGO) - Broadcom has a long-standing relationship with Apple. However, the semiconductor manufacturer increased the number of chips it provides to iPhones from eight to five including bringing wireless charging to the new iPhones. This led to expectations that AVGO would be a big winner when the new iPhones launched. However, that growth did not materialize right away, and Broadcom’s stock took a temporary hit as Apple accounts for approximately 20% of the company’s revenue. However, even if you’re not convinced that the iPhone is going to take off, there are many reasons to like this stock. That’s because the company is a market leader in 20 semiconductor franchise businesses. Growth through acquisition has been part of the company’s core strategy. The company also benefits from high costs of entry that allows them to enjoy little competition and therefore large profit margins. The stock is currently trading around $219 and some analysts anticipate it could reach a high of $300.
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
- $164.23
- Consensus Rating
- Buy
- Ratings Breakdown
- 25 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $192.79 (17.4% Upside)
Apple is a stock whose story is still being written. And one of the largest chapters in that story is the iPhone. But while the iPhone is the signature product of an iconic brand, it’s a product that relies on many premium suppliers to help it generate revenue. However, the payoff for the businesses that supply the casings, display screens, semiconductors and audio/visual technology that contribute to the iPhone’s best-in-class reputation, is the way the popular brand is a rising tide that lifts many other boats.
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