Excellent demand for semiconductors has helped the industry thrive in the face of supply chain breakdowns. In addition, significant federal funding is on the horizon that aims to boost the sector.
Congress $52 billion CHIPS Act Stalls, But Still On As Bill Is Separated From China Stipulations
Introduced in the House on June 11, 2020, this bill establishes investments and incentives to support U.S. semiconductor manufacturing, research and development, and supply chain security. Specifically, the bill provides an income tax credit for semiconductor equipment or manufacturing facility investment through 2026.
Intel pulled the plug on the groundbreaking for its own Ohio factory to protest Congress’s slow passage of a bill that would provide $52 billion of incentives to chipmakers.
📺 The US CHIPS Act: Why Intel Supports It
The semiconductor market is projected to grow at a CAGR of 9.2% from 2022 to 2029.
Broadcom $AVGO designs, develops, and supplies various semiconductor devices focusing on complex digital and mixed signal complementary metal oxide semiconductor-based devices and analog III-V-based products worldwide. The company operates in two segments, Semiconductor Solutions, and Infrastructure Software.
On May 26, 2022, AVGO announced that it would acquire all of the outstanding shares of VMware Inc. (VMW) in a cash-and-stock transaction. Also, on May 23, 2022, AVGO launched its high bandwidth monolithic automotive Ethernet switch device, the BCM8958X.
Vijay Janapaty, AVGO’s vice president and general manager of Physical Layer Products (AVGO), said, “Broadcom continues to lead with a comprehensive Ethernet solution for new automotive architectures.”
“Our new high bandwidth BCM8958X automotive switch along with our field-proven 802.3ch Ethernet 2.5G/5G/10Gbps and 100M/1G PHYs enable our customers to create future-proofed networking ECUs,” he added.
AVGO’s non-GAAP net revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... increased 22.6% year-over-year to $8.10 billion for the second quarter that ended May 1, 2022. Its non-GAAP net income came in at $4 billion, up 34.2% year-over-year, while its non-GAAP EPS came in at $9.07, up 37% year-over-year.
For 2022, analysts expect AVGO’s revenue to increase 20% year-over-year to $32.93 billion. Its EPS is expected to increase 31.9% year-over-year to $36.94 in 2022. In addition, it surpassed the consensus EPS estimates in each of the trailing four quarters.
Bullish Option Flow Detected In $AVGO Stock
GuerillaStockTrading.com has detected bullish option flow in $AVGO stock. Open interest in the $520 September 16, 2022 calls just hit 1,000.
In an analysis of the options flow, bullish call option activity dominates.
Make sure to review this lesson on option flow so that you understand the image above.
Broadcom $AVGO Chart, Higher Low On Congress Chips Act Rumors and News
$AVGO stock has recently formed a higher low as the TTM Squeeze indicator continues to move higher.