You have to wonder how much longer Broadcom Ltd. (AVGO) is going to go up before people realize that NXP Semiconductors (NXPI) and Skyworks (SWKS) should be higher.
I thought the Avago-Broadcom merger was sensational, but so was the NXP-Freescale deal. I was concerned that Skyworks wanted to pay too much for PMC-Sierra, which I didn't' think fit into the portfolio and made me feel that Skyworks itself didn't think it had as robust a future unless it made a deal.
At the same time, though, if Apple (AAPL) is going higher and the Internet of Things stays hot, I would not quit on these stocks and I would still be buying Broadcom, which now has a much broader portfolio than just Apple. CEO Hock Tan is a miracle worker who has cobbled together the fastest-growing semi in the land -- the quietest $67 billion semi I know. It just passed Texas Instruments (TXN) in size.
Broadcom has all of this juicy communications equipment required to make your cellphone work so much better than it does now. It is well ahead of all other companies. It is the company that I wish Intel (INTC) had bought instead of Altera.
Of all of the techies I follow, this one has the best chance of blowing numbers away when it reports. Yet, it sells for only 15x earnings. Broadcom's pretty much the poster child for why I believe tech is still cheap.
Just a great combination that was long suffering -- like the others mentioned here -- that is finally able to show the beauty of a telecommunications powerhouse that's no longer hostage to Apple.
The real tell about this combination is that when Jabil (JBL) announced that Apple cellphone orders had dropped off the face of the earth, Broadcom was barely hit. Can you imagine when the orders come back?
That's why you don't want to leave this now -- too much momentum ahead.