Broadcom Corporation (BRCM) recently announced a new line of in-vehicle high-speed connectivity and content streaming wireless chips for use in automotive infotainment applications. With the 5G WiFi and Bluetooth Smart Ready technology, Broadcom's wireless automotive chips pave way for passengers to sync content from their portable devices to the vehicle's infotainment system. They can also stream content to the rear-seat displays.
The smart remote allows drivers to use their smartphones to adjust seat, temperature and infotainment settings while providing important data on automotive performance. This move expands Broadcom’s footprint in the fast-growing connected car market. Using the IEEE 802.11ac standard, the integrated 5G WiFi technology provides the bandwidth required for multiple in-car displays and high speed connectivity. The Bluetooth Smart Ready technology allows products to take power at an incremental rate, thus enabling connectivity between the car and wearable tech and body sensors. The Bluetooth smart Integrated Chips (ICs) are likely to grow 10x by 2018.
Industry experts further expect the use of in-car Wi-Fi-enabled applications to grow eightfold by 2019 as car makers leverage the latest technologies. Every car is expected to be connected by 2025, while 30 billion devices are expected to be wirelessly connected by 2020 and the automotive wireless market is expected to reach $1.6 billion by 2018. With sophisticated products for the latest infotainment applications, Broadcom is well-poised to capitalize on this exponential growth in the industry.
Broadcom continues to drive innovation and engineering excellence across a broad range of communication end markets to help its customers enhance device performance and improve overall power efficiency. The innovative technologies related to connectivity, bandwidth and content enable the company to capture a sizeable market share.
Based in Irvine, Calif., Broadcom is engaged in designing and marketing semiconductor components of network voice, video, and data traffic for various applications.
Broadcom currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look in the industry include Nitto Denko Corporation (NDEKY) and Ubiquiti Networks, Inc (UBNT), each carrying a Zacks Rank #1 (Strong Buy), and DragonWave Inc. (DRWI), which carries a Zacks Rank #2 (Buy).