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Broadcom Corporation

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Broadcom’s existence as a standalone firm is likely to cease with the Avago merger in the first half of 2016. Broadcom remains susceptible to foreign exchange rate volatility and global macroeconomic challenges amid falling gasoline prices and tensions in the Middle East. We are also concerned about margin pressure due to accelerated new product ramp up and concentration risks. High operating risks for technology-driven products remain another concern for the firm. However, Broadcom reported relatively healthy third-quarter 2015 results as both GAAP and non-GAAP earnings increased year over year due to solid demand for high-end smartphone and broadband access products. Broadcom’s product leadership, solid financial performance and strong cash flow remain positives.

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