The semiconductor stocks are outperforming the S&P 500 this year. Is it too late to get in?
The UK competition regulator said US chipmaker Broadcom’s $69bn takeover of cloud software company VMware could make computer servers more expensive, warning it may launch an in-depth probe if its concerns are not addressed. The Competition and Markets Authority said on Wednesday that the acquisition, which if approved would be the biggest in Broadcom’s history, could “lead to less innovation and drive up the cost of computer parts and software” used by government, banks and telecoms. The UK regulator said it was considering an in-depth investigation into the tie-up after finding it could hurt competition, in a potential roadblock to the blockbuster deal announced last year. The tie-up is also being examined by competition enforcers in the US and Europe.
Broadcom (AVGO) is set to start the production of the fastest ethernet chip, Tomahawk 5, thereby expanding product portfolio.