Broadcom (AVGO) on Monday introduced a new multifunction chip to improve the power efficiency and connectivity of Wi-Fi routers. The company also cleared a regulatory hurdle to its planned acquisition of VMware (VMW). AVGO stock rose on the news.
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The San Jose, Calif.-based company debuted the world’s first FiFEM devices. FiFEM is an acronym for FBAR integrated front-end module. FBAR stands for thin-film bulk acoustic resonator, a technology used in smartphones for filtering and improving radio signals.
Broadcom says its FiFEM devices incorporate best-in-class FBAR filter technology and a state-of-the art power amplifier. The new devices are optimized for Wi-Fi 7 access points. They also significantly reduce power and costs at the radio-frequency front end, the company said.
“Last year, the market for Wi-Fi 6E and Wi-Fi 7 infrastructure devices like access points, routers and broadband equipment that supports Wi-Fi was just over 2 million units,” Chris DePuy, technology analyst at 650 Group, said in a news release. “Over the next five years, we expect consumer and enterprise Wi-Fi infrastructure device shipments to exceed 300 million units.”
AVGO Stock Surges
In other news, Reuters reported Monday that Broadcom was set to gain conditional approval from the European Union for its proposed $61 billion acquisition of cloud computing firm VMware. Broadcom announced the acquisition in May 2022.
In afternoon trades on the stock market today, AVGO stock rose 4.5% to 840.50.
On May 17, AVGO stock broke out of a flat base at a buy point of 648.50, according to IBD MarketSmith charts. Last week, AVGO stock spiked to a record high of 921.78 ahead of the company’s fiscal second-quarter earnings report.
Broadcom is on the three IBD stock lists: IBD Tech Leaders, Big Cap 20 and SwingTrader. IBD added Broadcom to the SwingTrader list on Monday.
AVGO stock ranks eighth out of 37 stocks in IBD’s fabless semiconductor industry group. It has an IBD Composite Rating of 97 out of 99.
IBD’s Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths. The best growth stocks have a Composite Rating of 90 or better.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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