Broadcom (BRCM) stock jumped early Monday after the chipmaker said it will look to sell or wind down its wireless business. Irvine, Calif.-based Broadcom said it has hired investment banker JPMorgan (JPM) to advise on its “strategic alternatives.” Broadcom was up 12% in early trading in the stock market today, near 35.75 and close to a 52-week high. It’s now above a 32.41 buy point out of a flat base. “The successful sale or wind-down of the
Chip stocks got a boost Monday from a positive report by RBC Capital Markets analyst Doug Freedman. He upgraded five semiconductor stocks to outperform from market perform: Altera (ALTR), Broadcom (BRCM), Micron Technology (MU), Nvidia (NVDA) and Texas Instruments (TXN). Freedman also raised his price targets on the five stocks. And he reiterated his outperform rating and raised price targets on five other chip stocks: Avago Technologies (AVGO),
Broadcom’s (BRCM) struggling mobile and wireless business could be sold off if the chipmaker doesn’t see improvement, analysts say. Analysts speculated last year that Intel (INTC) looms as a possible buyer of the Broadcom wireless unit, as IBD reported. In Q1, Broadcom’s mobile and wireless group generated an operating loss for the first time since 2009. Late Thursday, Broadcom posted Q1 earnings and revenue above Wall Street expectations,