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Is it a Good Time to Buy Broadcom?

Let’s talk about Broadcom (BRCM).

It’s in the semi-conductor space, it’s up a little bit -- and I think it really still has room to breakout. Recently the company made a decision to sell its cellular baseband business, and that was fantastic.

It’s really more of a pure play on wireless infrastructure and connectivity. Its chips are going to be focused on applications, blue tooth, cable and better processing. In addition, it will hook into consumer electronics and the Ethernet. Customers are Amazon (AMZN), Apple (AAPL), Cisco (CSCO), Dell (DELL)-- you name it.

In the most recent period, gross margins expanded to 55.2% from 52.2%. I love when they expand. The net also increased by almost 28%. I think both of these areas are going to start to ramp up much higher. Technically, there’s huge resistance between here and $40, but once this bad boy breaks out, there’s huge potential to the up side.

My target is $47, and I think I’m being conservative.

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Making Money with Charles Payne gives viewers an end-of-day wrap and provides an insider’s look at tomorrow’s money makers.