A lot of what has worried Broadcom (Nasdaq:BRCM)
analysts and investors appeared to come home to roost with the
company's latest earnings report. Weak guidance has investors fearing
that the company is losing more and more share to Qualcomm (Nasdaq:QCOM), with an overall stagnation in high-end devices leading to fears that ASPs and margins are in danger.
I can understand these fears, but I think there are still some
positives to this story. The company's NFC business appears to be doing
pretty well, and the higher-margin broadband and networking businesses
are likewise more than just afterthoughts. I'd be nervous making a
long-term commitment to any mobile chip company right now, but Broadcom
could work as a rebound trade for aggressive investors.
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