Topic: How To Invest

Pat: Can I have your quick opinion on two computer chip companies: Broadcom and Qualcomm? Thank you.

Article Excerpt

Broadcom, $44.26, symbol BRCM on Nasdaq (Shares outstanding: 549.7 million; Market cap: $26.8 billion; www.broadcom.com), develops chips for wireless and wired data transmission. The company’s products go into devices like cable TV set-top boxes, cable modems, high-speed networks, mobile phones, GPS devices and Blu-ray disc players. Many high-end smartphones and tablets continue to use Broadcom’s Wi-Fi chips, including Apple’s iPhone 6 and Samsung’s new Galaxy S6. The company also aims to expand in the field of devices or machines connected to the Internet, a trend generally known as the Internet of Things. Broadcom’s role in this market will probably focus on processors for the home. The stock trades at 15.9 times Broadcom’s forecast 2015 earnings of $2.79 a share. It yields 1.3%. Broadcom is okay to hold, but for aggressive investors only. Qualcomm, $69.00, symbol QCOM on Nasdaq (Shares outstanding: 1.6 billion; Market cap: $114.1 billion; www.qualcomm.com), makes chips for mobile devices, such as smartphones and tablets. A big part of the…