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Broadcom Unveils Wi-Fi 6 Chip to Boost Connectivity Devices

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Broadcom (AVGO - Free Report) recently rolled out 3x3 Wi-Fi 6 chip — BCM6710 — that is aimed at accelerating WLAN applications.

The customers can leverage the new chip to support latest Wi-Fi 6 compliant residential gateways, Wi-Fi routers, set-top boxes and wireless range extenders among other devices.

The latest chip is embedded with robust RF power amplifiers to facilitate high-performance applications in a cost-effective manner.

Notably, the company will demonstrate BCM6710 solution among other Wi-Fi 6 access point offerings at the 2019 Broadband World Forum (BBWF) from Oct 15-17 in Amsterdam, the Netherlands. The latest chip is under sampling to select customers.

Robust Features to Boost Adoption

Broadcom’s latest BCM6710 chip offers support to a wide range of band operation, including “2.4-GHz, 5-GHz and future 6-GHz.”  As a result, the devices powered by the chip offer immersive experiences according to the coverage and network speed requirements.

Particularly, 6-GHz band will facilitate complex, low-latency and high-bandwidth applications that include AR, 4K UHD video streaming and engaging gaming experience.

Broadcom claims BCM6710 to be the first 3x3 Wi-Fi 6 chip to feature three transmit (Tx) and three receive (Rx) streams across 2.4-GHz, 5-GHz and future 6-GHz bands.

The robust capabilities of the latest chip are expected to boost adoption, which bodes well for the company’s top line.

Broadcom Inc. Revenue (Quarterly)

 

Broadcom Inc. Revenue (Quarterly)

Broadcom Inc. revenue-quarterly | Broadcom Inc. Quote

 

In fact, the chip is facilitating Sagemcom Broadband to develop a diverse set of gateways and achieve faster time to market. The new chip is also witnessing traction from companies like Technicolor and Airties.

Compliance With Latest Wi-Fi 6 Augurs Well

Wi-Fi 6, the latest 802.11 wireless standard, offers 30% faster network speed over 802.11ac (Wi-Fi 5).

Expansion of Wi-Fi 6 portfolio with BCM6710 bodes well. Notably, Broadcom’s BCM4375 chip is being utilized by Samsung Galaxy S10, touted to be “world’s first Wi-Fi 6 phone.”

Rapid proliferation of IoT, increasing popularity of smart connected devices and growing adoption of cloud computing are fueling demand for an efficient network support infrastructure.

Broadcom’s efforts to roll out robust chips to enhance performance of the latest connected devices with support to latest wireless standards bode well in the long haul.

Per IDC, shipments of Wi-Fi chipsets with 802.11ax WiFi standard are projected to exceed 2.5 billion units in 2022. This reinforces Broadcom’s business prospects in the domain.

Wrapping Up

Broadcom is expected to benefit from robust demand for networking solutions, including routing and switching platforms. Its expanding product portfolio, and growing clout in the IoT solutions and 5G markets are tailwinds.

However, stiff competition from peers like Skyworks and Qorvo in the RF semiconductor market is a concern.

Zacks Rank & Stocks to Consider

Currently, Broadcom carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Alteryx (AYX - Free Report) , Synopsys (SNPS - Free Report) and Keysight Technologies (KEYS - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Alteryx, Synopsys and Keysight is currently pegged at 17.62%, 12% and 10%, respectively.

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