After slumping severely in early July following news that it would acquire CA Technologies, Broadcom has sprung to life. The company is looking so strong that it may actually light a fire among other struggling semiconductor stocks.
Last week’s powerful surge higher (following a very positive Q3 earnings report) was on very high volume; many indicators are now looking bullish.
Monday’s move up was a strong followthrough; notice the increase in money flow. Institutions are continuing to pile into this stock in a big way. RSI is overbought here but that is not a reason to sell. After such a big move higher, we might see a pause as the stock is now banging up against the 200 ma. Some gaps remain, and we expect those to be filled eventually. I think Broadcom is poised to make a new all-time high.
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About Broadcom
Broadcom Inc. designs, develops, and supplies a range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other. The Wired Infrastructure segment provides set-top box system-on-chips (SoCs); cable, digital subscriber line, and passive optical networking central office/consumer premise equipment SoCs; Ethernet switching and routing application products; embedded processors and controllers; serializer/deserializer application specific integrated circuits; optical and copper, and physical layers; and fiber optic laser and receiver components. The Wireless Communications segment offers RF front end modules, filters, and power amplifiers; Wi-Fi, Bluetooth, and global positioning system/global navigation satellite system SoCs; and custom touch controllers. The Enterprise Storage segment provides serial attached small computer system interface, and redundant array of independent disks controllers and adapters; peripheral component interconnect express switches; fiber channel host bus adapters; read channel based SoCs; and preamplifiers. The Industrial & Other segment offers optocouplers, industrial fiber optics, motion control encoders and subsystems, and light emitting diodes. Its products are used in various applications, including enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom Inc. is based in San Jose, California.
