Broadcom Corp

Net income for 2Q15 included acquisition cost of Avago Generally accepted accounting principles (GAAP) net income for 2Q15 included costs associated with the proposed acquisition of Avago (AVGO) of $22 million or $0.04 per share. Broadcom’s press release on July 31, 2015, stated, “GAAP net income for the first quarter of 2015 included impairment charges […]

US equities declined in 1Q15. GDP dropped by 0.7% in the first quarter against the expectation of 0.2% growth.

Steven Cohen’s Point72 Asset Management, which was earlier known as SAC Capital, added a position in Estée Lauder Companies (EL) in 1Q 2014.

Highfields Capital sold its position in BRCM in the third quarter. The position accounted for 1.66% of the fund’s 2Q14 portfolio. Broadcom makes semiconductors for wired and wireless communications.

Steven Cohen’s Point72 Asset Management, the new name for SAC Capital Advisors, disclosed new positions in its 13F filing this month.

To improve upon its storage business, Micron announced the availability of its 16-nm TLC planar NAND in the previous quarter.

Avago Technologies creates semiconductors, and is a key supplier to Apple and Samsung. Avago’s adjusted EPS for the quarter ended November 1 came in at $2.51.

Qualcomm’s (QCOM) stock performed poorly compared to the company’s peers in the semiconductor industry. As the chart below shows, Qualcomm’s stock has increased by only 2% year-to-date.

Avago Technologies (AVGO) is a designer, developer, and global supplier of a broad range of semiconductor devices. It’s purchasing Broadcom (BRCM).

Qualcomm continues to face issues in China (FXI), the most important market for the company. Plus, Samsung reportedly replaced Qualcomm’s chipsets with its own chipsets in its latest Galaxy S6 smartphone.

Broadband and connectivity In 2Q15, the “Broadband and Connectivity” segment of Broadcom (BRCM) generated revenues of $1.42 billion compared to $1.40 billion in 1Q15 and $1.30 billion in 2Q14. Operating income in 2Q15 for this segment was $268 million compared to $241 million in 1Q15 and $243 million in 2Q14. While operating margin was 18.8% […]

Texas Instrument’s Embedded Processing segment’s products can be referred to as the “brains” of many electronic devices. They’re designed to handle specific tasks.

On January 21, Xilinx announced its fiscal 3Q16 earnings. Its earnings beat analyst expectations, but the firm still posted a weak guidance for fiscal 4Q16.

Highfields Capital Management LP is based in Boston. The fund was founded by Jonathon Jacobson in 1998. The fund’s US long portfolio declined slightly to $12.8 billion in the third quarter.

It’s important for investors to understand the MAC clause. It explains how Avago (AVGO) can exit its transaction with Broadcom (BRCM).

Globally, a lot of mega deals have happened in the semiconductor sector. On May 28, Avago Technologies announced that it would acquire Broadcom.

Micron (MU) generated an operating cash flow (or OCF) and free cash flow (or FCF) of $1.3 billion and $200 million, respectively, in fiscal 3Q15.

Out of 23 analysts covering the stock, 18 have a “buy” recommendation on Skyworks Solutions, and five have a “hold” recommendation on it.

Texas Instruments (TXN) was founded in 1941. It’s headquartered in Dallas. TXN is known for designing and manufacturing semiconductors. It has operations in ~35 countries.

Generally, bond yields increase when the economy is expanding because the central bank will likely raise rates sooner rather than later—the demand for financing for funding new projects also increases which generally tends to increase rates.

Qualcomm’s management mentioned that its Wi-Fi and RF360 products are showing fast growth. RF360 is the radio frequency chipset that is a single chipset aimed to work with 40 different cellular radio bands across the world.

The ClearBridge Aggressive Growth Fund – Class A (SHRAX) had $12.1 billion worth of assets under management at the end of January 2016.

ClearBridge Aggressive Growth Fund’s top ten equity holdings in December included UnitedHealth Group (UNH), Comcast (CMCSA), SanDisk (SNDK), Broadcom (BRCM), and Anadarko (APC).

Intel expects fiscal 2016 to start slow given the weak economic growth in China. Its move towards data center and IoT will likely boost sales in 2016.

In September 2015, Intel announced plans to invest $50 million in quantum computing. Also, Intel Capital announced plans to invest in eight Chinese startups.

The ClearBridge Aggressive Growth Fund’s assets were invested in 78 holdings in stocks, bonds, and cash as of November 2015. The fund managed $14.04 billion in assets as of the end of November.

As of December 2, Avago’s stock was trading at $132.21, at the high end of its 52-week range of $95.18–$150.50. Over the past 52 weeks, it soared by 28%.

In 3Q15, Broadcom’s (BRCM) expenses in research and development (or R&D) fell to $542 million from $573 million in 3Q14 and $609 million in 3Q13.

Intel accounts for 98% of the microserver market. ARM Holdings is its main competitor in the microserver space.

In August 2015, Avago announced its 3Q15 results and declared revenues of $1.73 billion, a 7.49% increase compared to 2Q15.

Fabless suppliers like Nvidia, Qualcomm, and Broadcom had the highest research and development spending as a percentage of sales ratios in 2014.

SMH tracks the performance of 26 publicly listed companies in the US semiconductor sector. Its market capitalization is $277.70 million with an expense ratio of 0.35%.

The VanEck Vectors Semiconductor ETF (SMH) tracks a market cap–weighted portfolio of US semiconductor companies. SMH’s market capitalization is $179.29 million.

Overview of the company Broadcom (BRCM) is a global leader and innovator in semiconductor solutions for wired and wireless communications. The company has a portfolio of integrated SoC (system-on-a-chip) solutions that help deliver voice, video, data, and multimedia connectivity for both home and business applications. Broadcom’s business is structured around two reportable segments: Broadband and Connectivity Infrastructure and […]

Intel’s Data Center Group supplies server, storage, and network platforms for enterprise, cloud, communications infrastructure, and technical computing.

Only a few large companies, including Intel, Samsung (SSNLF), and Taiwan Semiconductor Manufacturing Company (TSM), could afford to run 450 mm manufacturing sites.

The current ratio measures whether the firm is in a position to pay their obligation or not. The higher the ratio, the better. Skyworks has the highest ratio of 5.70.

After the Broadcom acquisition, Avago Technologies is set to become the third largest semiconductor company in the world after Intel and Qualcomm.

In the Broadcom-Avago merger, you’re getting about an 8.9% annualized yield. That’s probably a reasonable return in a low interest–rate environment and given the risks of the transaction.

The Broadcom-Avago merger can fall apart on antitrust or on the national interest issues of the CFIUS. The most realistic way to block the merger is through CFIUS review.

On June 1, Intel announced the acquisition of Altera for about $16.7 billion, funded by cash and debt. Intel would pay $54 per share to Altera.

In the Broadcom-Avago merger, Broadcom (BRCM) shareholders will have the right to choose from four options for their stock. Shareholders should take advantage of the best option.

The Broadcom-Avago merger is expected to deliver $750 million in annual synergies within about 18 months of completion of the deal.

The Broadcom-Avago merger is a cash and stock transaction. Broadcom shareholders will participate in the upside by holding stock in the merged entity.

Up to 3Q13, Broadcom was the fifth-ranked player in the cellular baseband market. Last year, Broadcom exited that market, citing stiff competition.

In a May 28 press release, Avago Technologies said it will acquire Broadcom for $37 billion. Avago will gain a broad portfolio of chips that Broadcom develops.

Gordon Moore predicted that chip complexity would double roughly every year. Moore’s Law has held up well, as chip complexity doubles every year and a half.

Lantiq develops modem or transceiver chipsets and system on chips, or SoCs, for home and office broadband hardware and carrier access equipment.

Highfields Capital initiated a new position in MIK in the third quarter. The position accounts for 1.38% of the fund’s 3Q14 portfolio. Michaels is the largest arts and crafts specialty retailer in North America.

According to the company’s annual report for 2013, no single Texas Instruments customer accounts for 10% or more of its revenue. This means the company’s growth isn’t dependent on any single customer, and that it has a diversified customer base.

Once a Texas Instruments customer selects an analog chip, there’s a tendency to stick with it for the entire life of the device. It’s a costly affair to redesign a device for a different chip that may not be compatible with the rest of the product.

Of its three operating segments, the analog and embedded processing segments are growing best. At the same time, it’s the analog and other segments that contribute the best margins.

Here, we’ll discuss Intel’s outlook in Q2 and why Intel expects its gross margins to increase sequentially from 60% in Q1 2014 to 63% in Q2 2014.

Highfields Capital established a new 1.38% position in Royal Dutch Shell last quarter.