- RF component, optical fiber, and storage markets are expected to grow in coming years.
- Avago will capitalize on industry growth due its FBAR products, rising content per device, and IP strength.
- Acquisition of LSI is expected to bring cost and product synergies.
- Avago is priced cheaply on forward-earning basis, and thus it holds valuation growth potential. Buy ahead of earnings to capitalize on potential revenue beat and strong outlook.