Cloud Computing Buildout Benefits Chip and Networking Stocks

Jefferies & Co. released a research note this morning indicating that the growing trend of cloud computing services, and the required high-speed networks required to support them, should help semiconductor and networking stocks over the intermediate term.

The analysts highlights Broadcom (NASDAQ:BRCM), Netlogic (NASDAQ:NETL) and Inphi (NYSE:IPHI) as potential beneficiaries.  Inphi has developed close ties with networking powerhouse Cisco Systems (NASDAQ:CSCO).  Competitors such as Finisar (NASDAQ:FNSR) and Semtech (NASDAQ:SMTC) could be left in the dust.

Following is some information on these companies’ stock price performance:

  • Broadcom (NASDAQ:BRCM): The shares recently traded at $34.25, up $0.22, or 0.59%, on the day.  The shares have traded in a 52-week range of $30.71 to $47.39 and its market capitalization is $18.32 billion.  About the company:  Broadcom Corporation provides integrated silicon solutions that enable broadband digital data transmission of voice, data, and video content to the home and within the business enterprise.  The Company designs, develops, and supplies integrated circuits for cable set-top boxes, cable modems, high-speed networking, direct satellite and digital broadcast, and digital subscriber line.
  • Netlogic (NASDAQ:NETL): The shares recently traded at $48.17, up $0.01, or 0.03%, on the day.  The shares have traded in a 52-week range of $25.11 to $48.50 and its market capitalization is $3.32 billion.  About the company: Netlogic Microsystems, Inc. is a semiconductor company that designs, develops and markets high performance knowledge-based processors.  The Company’s products are designed for a variety of advanced networking systems, such as routers, switches, access multiplexors and networked storage devices.
  • Inphi (NYSE:IPHI): The shares recently traded at $8.63, up $0.01, or 0.12%, on the day.  The shares have traded in a 52-week range of $7.12 to $27.20 and its market capitalization is $236.24 million.  About the company: Inphi Corporation is a fabless provider of high-speed analog semiconductor solutions for the communications and computing markets.  The Company’s solutions provide a high-speed interface between analog signals and digital information in systems such as telecommunications transport systems, enterprise networking equipment, datacenter and enterprise servers, and storage platforms.
  • Cisco Systems (NASDAQ:CSCO): The shares recently traded at $15.91, up $0.07, or 0.44%, on the day.  The shares have traded in a 52-week range of $13.30 to $24.60 and its market capitalization is $85.7 billion.  About the company: Cisco Systems, Inc. supplies data networking products for the Internet.  The Company’s Internet Protocol-based networking solutions are installed at corporations, public institutions and telecommunication companies worldwide.  The Company’s solutions transport data, voice, and video within buildings, across campuses, and around the world.
  • Finisar (NASDAQ:FNSR): The shares recently traded at $18.12, down $0.79, or 4.18%, on the day.  The shares have traded in a 52-week range of $12.26 to $46.09 and its market capitalization is $1.64 billion.  About the company:  Finisar Corporation provides fiber optic susbsystems and network performance test systems which enable high speed data communications over local area network and storage area networks.  The Company’s line of optical subsystems supports a variety of network applications, transmission speeds, distances, and mediums.  Finisar also provides network performance test systems.
  • Semtech (NASDAQ:SMTC): The shares recently traded at $21.78, up $0.07, or 0.32%, on the day.  The shares have traded in a 52-week range of $19.16 to $29.47 and its market capitalization is $1.44 billion.  About the company: Semtech Corporation designs, manufactures, and markets a wide range of analog and mixed-signal semiconductors, including integrated circuits, discrete circuits, and assembly products.  The Company’s devices are used in computer, communications, industrial, military-aerospace, and automotive applications.

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