Tuesday, May 7, 2013

Investopedia: Broadcom Has To Play Offense And Defense

Once a darling of the floundering chip space, smartphone chip stocks have had a rather rough time of it over the past year or so. Avago (Nasdaq:AVGO), Skyworks (Nasdaq:SWKS), Qualcomm (Nasdaq:QCOM), and Broadcom (Nasdaq:BRCM) have all notably lagged the market over the past year. While it's true that these one-time market-beaters may have overshot the mark and been due for a retrenchment, investors have nevertheless been worried about the pace of high-end smartphone demand and the risk of increased price-based competition from Asian suppliers.

Though I'd be very careful about simply plugging my ears and ignoring the threats to Broadcom's business, this stock continues to look like a solid name for the long term. That said, with the stock close to a 52-week high, the potential here isn't quite what it once was.

Please read more here:
http://www.investopedia.com/stock-analysis/050713/broadcom-has-play-offense-and-defense-brcm-qcom-aapl-intc-avgo-swks-sprd.aspx

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