Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Cut off from Qualcomm, Broadcom may eye other chip buyouts

Published 03/13/2018, 11:32 AM
© Reuters.  Cut off from Qualcomm, Broadcom may eye other chip buyouts
QCOM
-
XLNX
-
MRVL
-
ADI
-
MU
-
MXIM
-
AVGO
-
CAVM
-
MLNX
-
  • With Broadcom's (AVGO +1.4%) hostile pursuit of Qualcomm (QCOM -4.5%) at an end via the signature of President Trump, what's next for the firm's acquisition prospects?
  • The firm's liable to stay in the market for a purchase, RBC's Amit Daryanani says, with some potential interest in memory chip firms and semiconductor capital equipment companies as well.
  • Xilinx (XLNX -1.3%), for example, satisfies most of Broadcom's requirements and is in a "stable duopoly," Daryanani says. And operating margin expansion could be attainable at Analog Devices (ADI +0.2%) or Maxim (MXIM -0.8%).
  • But Marvell (MRVL -5.2%) would be a tougher nut due to regulatory hurdles even though it fits -- and Benchmark believes the collapse of a Broadcom/Qualcomm pursuit will put marvell's deal with Cavium (CAVM -4%) in the regulatory spotlight. (h/t Bloomberg)
  • Meanwhile, KeyBanc is pointing to Micron (MU +1.9%) as a potential Broadcom target next.
  • Also floated by a couple of analysts (though not as transformational a deal for Broadcom as Qualcomm would be): Israel's Mellanox (NASDAQ:MLNX).
  • Now read: Marvell Technology Group, Ltd. 2017 Q4 - Results - Earnings Call Slides


Original article

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.