Buy This Top Chipmaker Before Tomorrow Night

The projections are looking great for tomorrow evening’s earnings report from a well-known chipmaker. Analysts are calling for 38% forecasted sales growth and 15.3% earnings growth. On top of this, the consensus EPS estimate has jumped 9% in the past 90 days. Which company am I referring to?

I’m talking about Broadcom Ltd. (AVGO), which is on deck to announce its fiscal second-quarter results after the close tomorrow. Based in Singapore, Broadcom is one of the world’s leading semiconductor companies. In February 2016, chip maker Avago Technologies acquired Broadcom for a staggering $37 billion, and the rest is history.

Today, the company has four main business units: Wired infrastructure, wireless communications, enterprise storage, and industrial & others. Broadcom’s products encompass data center networking, home connectivity, broadband access, smartphones and more.

And Broadcom has stunning earnings prospects for the foreseeable future. For the current fiscal year, analysts expect 30% annual earnings growth and 28.6% sales growth. Then again, Broadcom is known for smashing analysts’ expectations, so the sky is the limit for the chipmaker. In the meantime, AVGO trades at less than 15 times forecasted earnings, so it’s an excellent buy.

My expectation is that this will be a headline-making earnings report, so I recommend AVGO as an A-rated Strong Buy.


signed: Louis Navellier

Louis Navellier

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