Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Iris Shih who wrote (22837)	8/17/1999 8:00:00 AM
From: Iris Shih	Read Replies (1) \| Respond to of 68728

New Chip Propels Broadcom Stock LOS ANGELES (Reuters) - The stock of Broadcom Corp. (Nasdaq:BRCM - news), a maker of communications chips, rose strongly Monday after the company unveiled a new chip it said would revolutionize business networking. The stock rose more than $10, or 8.3 percent, to nearly $131 in early morning trade, before trimming some of that. The stock closed up 7-3/8 at 127-7/16 in trading on Nasdaq. The rise followed an announcement Sunday by the Irvine, Calif.-based company that it was rolling out a new chip that can perform the work of up to 10 separate chips to speed up the delivery of video, voice and data. Analysts said the chip was a significant advance for Broadcom, which has moved aggressively to establish dominance in the market for fast chips that drive business and home networks. ''It really opens up what we think is going to be a very strong market,'' said Greg Collins, an analyst with research firm Dell'Oro Group. ''My understanding is that it represents a whole new level of integration for a switching system.'' ''It's certainly very complementary of their other types of networking products,'' Collins said. The chip, called the StrataSwitch, replaces previous switching systems that required several chips to handle each type of data, Broadcom said. Users of systems using the new chip can make Internet telephone calls, stage video conferencing and access data at the same time, it said. The chip was expected to be offered commercially later this year for under $100, with a potential market of about $300 million in annual sales. ''It is a fairly significant announcement on their part in terms of what it allows OEM (original equipment manufacturer) suppliers to do,'' said Esmeralda Silva, an analyst with research firm International Data Corp. ''You're getting a lot of efficiencies in terms of the integration, and you're at the right price point,'' Silva said. The chip was the first product to emerge from Broadcom's acquisition this year of Maverick Networks. Maverick is one of several companies Broadcom had bought recently. Last week it agreed to acquire AltoCom, a maker of software-based modems, for $180 million in stock. ***Mattie: we once followed brcm for a long while when it was hovering around 40s~50s. How could we miss it? Iris