3. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 62
Market Cap: $249.60 billion
Broadcom Inc. (NASDAQ:AVGO) ranks next on our list of the biggest chip producers in the world. The California-based firm offers a diverse portfolio of semiconductor and software products that are used in wireless connectivity systems, routers, processors, fiber optics, and data center switches. The firm also provides set-top box system-on-chips (SoCs) and fiber channel networking products used in data centers. Broadcom Inc. (NASDAQ:AVGO) deals in infrastructure software solutions which are used by enterprises to build, manage, and secure complex digital ecosystems. The main clients of Broadcom Inc. (NASDAQ:AVGO) include IBM, Linksys, Logitech, Dell and Cisco Systems, along with many others.
On February 24, Broadcom Inc. (NASDAQ:AVGO) announced its broad, industry-leading PCIe Gen 5.0 portfolio, which is setting the foundation for the ecosystem to build high-performance, next-generation servers. Broadcom’s switches and custom silicon products known as PCIe Gen 5.0 SerDes are now available to cloud providers, original equipment manufacturers (OEM) and original design manufacturers (ODM) and are currently undergoing testing for wide-scale interoperability.
Baird analyst Tristan Gerra maintained an ‘Outperform’ rating on Broadcom Inc. (NASDAQ:AVGO) shares on March 4, noting that demand remains strong and is expected to accelerate year-on-year this quarter. The growth drivers for the firm include enterprise IT, hyper-scale and cloud, switches upgrades in networking, storage network connectivity, and next-generation PON and DOCSYS in broadband. JPMorgan analyst Harlan Sur has an ‘Overweight’ rating on Broadcom Inc. (NASDAQ:AVGO), and sees the firm’s business continuing to accelerate. He sees Broadcom’s solid earnings results and future guidance reflecting the strong leverage it has in its end markets and its strong product cycles.
As of March 25, shares of Broadcom Inc. (NASDAQ:AVGO) have gained 30.46% in the last 12 months, and 24.57% in the last six months. The firm recorded $27.45 billion in fiscal 2021 revenue for the period ending October 31, a 14.91% increase year-over-year.
Richie Capital Group talked about Broadcom Inc. (NASDAQ:AVGO) in its Q4 2021 investor letter. Here’s what the fund said:
“Broadcom (AVGO – up 36.5%) – The semiconductor device manufacturer reported an outstanding Fiscal Q4. Results (and guidance) exceeded Wall Street analyst expectations, and the company raised its dividend by 14% and announced a new stock-repurchase program. Semiconductor related revenue grew 17% while software revenue grew 8%. On the negative side, it was rumored that Apple, their largest customer, is making plans to develop their own wireless chips. This would be a blow to Broadcom. However, AVGO has a $15 billion contract with Apple that is good through 2023 and includes radio frequency parts such as amplifiers, filters and switches.”
