Broadcom Corp.’s stockpile of chips could close the quarter at “an ideal level,” Chief Executive Scott McGregor said on Thursday.
“We still believe we’re on track to close out Q4 with inventories approximating an ideal level for us,” Reuters quoted McGregor as saying at the Lehman Brothers Global Technology Conference. “So we’re very comfortable with that.”
Investors have worried about a buildup of unsold chips at Irvine-based Broadcom during the fourth quarter. Other chipmakers have gluts after some customers ordered too much earlier in the year.
Broadcom saw a glut emerging in the second quarter and began adjusting its inventory, McGregor said.
In October, American Technology Research analyst Shaw Wu said a slowdown in Broadcom’s key networking markets could leave it with unsold chips.
“We believe inventories still need to be worked down,” he wrote at the time.
