Broadcom Jumps 5%: Another Apple Cycle Ramps, Networking Dazzles

Shares of Broadcom (AVGO) today closed up $7.65, or almost 5%, at $162.56, continuing last night’s gains, after the company beat fiscal Q2 expectations, and forecast this quarter’s revenue higher as well, in its first quarterly report since the merger of Broadcom and Avago. During a conference call following the report, CEO Hock Tan spoke of areas of strength, such as the company’s chips for network routing and switching: We experienced robust demand in switching and routing standard products, including very strong traction for our new Tomahawk switching and Jericho routing platforms, especially from the cloud and service provider customers. In fact, as some of you may know, a key customer today announced a new lead, a universal lead switch and routing platform for next generation data centers, which is based on the Jericho product platform.