Broadcom Bucks the Recent Semiconductor Trend, Raises Guidance (BRCM)

By Staff,

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In a surprise announcement, semiconductor play Broadcom ( BRCM ) is raising its guidance this morning, citing increasing demand for the company's chips.

The chipmaker increased its forecast for net revenue to about $1.8 billion, which is near the high end of its prior range. This is above recent analysts' forecast of $1.76 billion.

In late October the company had put out gloomier guidance to Wall Street and investors, so again, this morning's announcement was a bit of a surprise. The company makes chips for products ranging from cellphones to television set-top boxes. Again, this follows recent semiconductor earnings' warnings from the likes of Texas Instruments ( TXN ), Intel Corp ( INTC ), and Altera Corp ( ALTR ).

The Bottom Line
Shares of Broadcom ( BRCM ) have a 1.28% dividend yield, based on last night's closing stock price of $28.19. The stock has technical support in the $25-$26 price area. If the shares can firm up, we see overhead resistance around the $32-$34 price levels.

Broadcom ( BRCM ) is not recommended at this time, holding a DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: ALTR , BRCM , INTC , TXN

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