U.S. Markets closed

Broadcom Surges Amid Intention to Sell Cellular Baseband Business

Shares of Broadcom surged on Monday making it TheStreet's Move of the Day. The company known for making chips for wireless devices announced it is looking to sell its cellular baseband business, known by consumers as the chip in smartphones that connect them with cellular networks to operate data and phone services. Broadcom said in a statement that offloading the business could save it roughly $700 million a year. The move didn't change the company's guidance for the current quarter, stating: "Broadcom continues to expect revenue between $2.0 billion and $2.1 billion. Broadcom now expects both GAAP and non-GAAP product gross margin to be at or above the high end of the previously-guided range, driven principally by mix."