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Broadcom Corporation (BRCM - Analyst Report), recently launched its first 5G WiFi combination chips with 802.11ac technology that can be used in PCs, notebooks, tablets, smartphones and other connectivity devices.

The new wireless single chips feature a highly integrated design at a lower cost enabling Original Equipment Manufacturers (OEMs) to reduce their bill of materials (BOM) cost. The 1x1 5G Wifi chips are most suitable for entry level devices.

There is an increasing demand of 802.11ac chips across all product segments.  These chips are already being shipped in substantial quantity in the current fiscal and by 2014, 802.11ac chips are expected to contribute to more than 50% of the total Wi-Fi chip shipment.

Broadcom is focused on innovative technologies related to connectivity, bandwidth and content, which enable it to capture a sizeable market share. The new technology is an initiative in this endeavour.

The second generation 5G WiFi combo chips, which include the BCM43162 and BCM4339, offer high performance, remarkable speed, range and power benefits and low cost solutions to the user. Broadcom enjoys a leadership position in this product category and aims to further capitalize on this growing market potential with the new 5GWiFi technology in mass market devices.

Broadcom is well placed in the fast-growing wired and wireless communications markets, with cutting-edge solutions for a growing number of connected users, who are demanding more content and bandwidth.

Based in Irvine, CA, Broadcom is engaged in designing and marketing semiconductor components of network voice, video, and data traffic for various applications. The company continues to drive innovation and engineering excellence across a broad range of communication end markets to help its customers enhance device performance and overall efficiency.

Broadcom currently has a Zacks Rank #2 (Buy). Other stocks that look promising and are worth a look are Parkervision Inc.  (PRKR) and Towerstream Corporation (TWER - Snapshot Report), iSoftStone Holdings Limited each carrying a Zacks Rank #2 (Buy).

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