Finding the Upside with Broadcom

“Connecting Everything” is a perfect company slogan for a company which has been doing just that. Broadcom (BRCM), a semiconductor company based in Irvine, CA, has had explosive growth recently. Many of its products are regarded as parts of the wireless and multi-face future. Its low-cost, high-speed multi-functioning “system-on-a-chip” semiconductors and the software that combines voice, video, data, and multimedia applications are best-of-breed in the industry.

In addition, Broadcom has contracts with other highly regarded computer companies such as Apple (AAPL), Alcatel (ALU), Cisco (CSCO), Dell (DELL), EchoStar (SATS), HP (HPQ), IBM (IBM), LG, Nintendo (NTDOY.PK), Nokia (NOK), Nortel Networks (NT), Pace, Samsung and many others. Although they have a lot of contracts with these big name companies, they also do a lot of business with smaller companies. In 2007, the leading five customers accounted for about 40% of total revenue.