Ashraf Eassa
Long/short equity, contrarian, independent research, tech

Broadcom: Unloved And Undervalued, Shares Have 30% Near-Term Upside

It is my belief that shares of Broadcom (BRCM) are extremely undervalued and have 30% near-term upside as shares are set to rebound significantly over the coming quarters.


Broadcom is a fabless semiconductor that focuses primarily on developing networking and communications integrated circuits for a wide variety of applications including data, voice, and video. The company's operating segments can be distilled as follows:

  • Mobile and Wireless (48% of revenue in FY2012)
  • Broadband Communications (28% of revenue in FY2012)
  • Infrastructure and Networking (23% of revenue in FY2012)

The numbers do not add up to 100% as in FY2012, the company had a fourth operating segment known as "Other" which comprised roughly 2% of FY2012 revenue. This segment was composed of...

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