Broadcom (AVGO) on Monday introduced a new multifunction chip to improve the energy efficiency and connectivity of Wi-Fi routers. The company also removed a regulatory hurdle to its proposed acquisition of vmware (VMW). AVGO stock rose on the news.
X
The San Jose, Calif.-based company launched the world’s first FiFEM devices. FiFEM is an acronym for FBAR Integrated Front End Module. FBAR stands for Thin Film Bulk Acoustic Resonator, a technology used in smartphones to filter and enhance radio signals.
Broadcom claims that its FiFEM devices incorporate best-in-class FBAR filter technology and a state-of-the-art power amplifier. The new devices are optimized for Wi-Fi 7 hotspots. They also significantly reduce power and cost at the radio frequency front end, the company said.
“Last year, the market for Wi-Fi 6E and Wi-Fi 7 infrastructure devices such as Wi-Fi enabled access points, routers and broadband equipment was a bit over 2 million units,” said Chris DePuy, technology analyst at 650 Group. A press release. “Over the next five years, we expect shipments of consumer and enterprise Wi-Fi infrastructure devices to exceed 300 million units.”
AVGO Inventory Rise
In other news, Reuters reported on Monday that Broadcom is set to win conditional approval from the European Union for its proposed $61 billion acquisition of cloud computing company VMware. Broadcom announced the acquisition in May 2022.
Trading today, AVGO stock rose 6.3% to close at 855.36.
On May 17, AVGO stock broke from a flat base to a buy point of 648.50, according to IBD MarketSmith charts. AVGO stock hit a record high of 921.78 last week ahead of the company’s fiscal second quarter earnings report.
Broadcom is on all three IBD stock lists: IBD Tech Leaders, Big Cap 20 and SwingTrader. IBD added Broadcom to the SwingTrader list on Monday.
AVGO stock ranks eighth out of 37 stocks in IBD’s fabless semiconductor industry group, according to IBD Stock Checkup. It has an IBD composite rating of 97 out of 99.
The IBD Composite Rating is a mix of key fundamental and technical measures to help investors assess a security’s strengths. The best growth stocks have a composite rating of 90 or higher.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
YOU MIGHT ALSO LIKE:
Seniors aging in place: a golden opportunity for tech companies
Netflix stock rises as crackdown on account sharing boosts paid subscribers
Apple Investor Focus eyes iPhone 15 introduction after headphone debut
See stocks on the leader list near a buy point
Find winning stocks with MarketSmith pattern recognition and custom screens