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Analysis before buying or selling Broadcom shares

Trade the Broadcom share!
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Are you interested in investing in the electronics and semiconductor sector through Broadcom stock? Before you buy or sell this stock, we recommend that you take the time to learn all the essential information and data about the company that will help you make a relevant analysis. This includes the company's activities and sources of revenue, as well as its main competitors and current partners. You should also be able to identify in the news and events of the sector the elements that can influence its stock price and that can be used in the fundamental analysis.

Elements to consider before selling or buying Broadcom shares

Analysis N°1

First of all, it will be necessary to monitor the evolution and economic growth of certain sectors of activity on which Broadcom largely depends. This concerns in particular the digital television sector and the aeronautics industry.

Analysis N°2

The development of 5G and the number of telecommunication devices on the market may of course also have an impact on the price of this stock.

Analysis N°3

Economic growth or recession in certain geographic areas will also have a positive or negative impact on Broadcom's business, including the United States and the euro zone.

Analysis N°4

It will also be important to keep a close eye on the increasing competition in this sector with the major events and publications of the major players in the sector.

Analysis N°5

Strategic acquisitions or partnerships of other companies will also be major events for the growth of this group and its activities.

Analysis N°6

Finally, it will also be important to monitor the company's year-on-year financial performance and to compare it with analysts' expectations.

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General presentation of Broadcom

In order to carry out a meaningful and constructive analysis of Broadcom stock, you obviously also need to understand who the company is and what its activities are, as well as its main sources of revenue. This is what we propose to find out now with a complete presentation of this company:

Broadcom Group Inc. is an American company operating in the electronics industry.

More specifically, the company specialises in the design, development and sale of analogue, mixed-signal and optoelectronic components and subsystems. The company is one of the world's largest semiconductor producers and its products include power amplifiers, radio frequency filters, encoders, optocouplers, fibre optic transceivers and other products.

To better understand the Broadcom Group's activities, they can be divided into two broad categories according to the share of revenue they generate and in this way:

  • Semiconductors generate the bulk of the company's revenues with 74.3% of the turnover.
  • Infrastructure, which generates the remaining 25.7% of turnover.

Geographically, 22.2% of Broadcom's revenue is generated in the Americas, with 65.5% coming from Asia Pacific and 12.3% from Europe, Middle East and Africa.

Analysis before buying or selling Broadcom shares
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The major competitors of Broadcom

Broadcom is one of the largest companies in its industry, but it also faces some tough competitors in the semiconductor world and on a global scale. Here is a quick overview of its main rivals:

Intel corporation 

This American company is currently the world's second largest semiconductor manufacturer in terms of turnover. It manufactures microprocessors, motherboards, flash memory and graphics processors. The company is currently listed on the Nasdaq market.

Samsung Electronics 

This Korean company is a subsidiary of the giant Samsung and specialises in the manufacture of electronic products. With over 300,000 employees, it is one of the largest companies in this sector in terms of turnover and stock market capitalisation.

TSMC

The Taiwan Semiconductor Manufacturing Company is currently the largest independent semiconductor foundry in the world. The Chinese company manufactures graphics chips for NVidia, Qualcomm's Snapdragon system chips and Apple's chips.

Micron Technology 

 This US company specialises in computing and is the parent company of Lexar and Crucial. Its activities include IT infrastructure such as computers, network systems, graphics systems and cloud servers, phones and peripherals including tablets, removable storage media such as USB sticks and floppy disks, and other products for the automotive, connected home and consumer electronics industries.

Qualcomm 

This American company is also a leader in the technology sector and specialises in mobile technology. It is active in the design and implementation of telecommunications solutions and was one of the world's leading companies in the design and sale of processors for mobile phones. It is also a fabless company that developed CDMA technology.

Texas Instruments

Finally, Texas Instruments or TI is an American electronics company that is known in the field of passive electronic components and semiconductors. The company is headquartered in Dallas and offers a catalogue of over 80,000 products including microcontrollers, processors, sensors, wireless connectivity and scientific calculators.


The major partners of Broadcom

While Broadcom faces significant competition from many players in its industry, it can also increase its growth by forming strategic partnerships with other companies. Here are two examples of such partnerships recently entered into by Broadcom.

HCL

HCl has become a preferred services partner for Broadcom's enterprise software products, providing professional services, education and training to Broadcom customers who will also have access to HCL's technology expertise through consulting, implementation, upgrades or support services. In addition, the majority of Broadcom's professional services staff will transition to HCL.

ARM Holdings

This company has also entered into an agreement with Broadcom to extend the existing licence agreement between the two companies and to cover the full range of ARM architectures for communications applications. As part of this agreement, Broadcom has also been awarded almost the entire ARM range and is expected to develop communications chips across a broad range, not just in the wireless range as is currently the case.

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Frequently Asked Questions

Who are the largest shareholders in Broadcom?

Currently, the largest shareholders in Broadcom are Capital Research & Management World Investors with 9.6%, The Vanguard Group with 8.26%, Capital Research & Management International Investors with 8.25%, Capital Research & Management Global Investors with 6.54%, SSgA Funds Management with 3.86%, Kohlberg Kravis Roberts & Co with 2.32%, H&S Ventures with 2.19%, BlackRock Fund Advisors with 2.08%, Capital Research & management with 2.02% and Geode Capital Management with 1.57%.

Does Broadcom pay a dividend to its shareholders?

Yes, Broadcom does pay a dividend each year to its shareholders. The last dividend from this group was $15.40 per share, which represents an annual yield of 2.64%. This company has been paying its shareholders for many years and more precisely since 2010 without any interruption. Its dividend is detached and paid four times a year, with a quarterly payment rhythm.

How can I find out about future trends in Broadcom shares?

To find out how Broadcom's share price is likely to perform, you need to use several methods of analysis before buying or selling. The first is of course technical analysis, which will study the historical and current price movements of this stock and use trend or volatility indicators, and the second is fundamental analysis, which will study the news and the economic environment of this company.

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