Shares of Broadcom Corp. rose in late afternoon New York trading, despite an analyst’s warning that he sees slowing sales for the Irvine chipmaker and others.
Broadcom was up nearly 6% on a market value of nearly $9 billion.
The driver: expectations of a big drop in fourth-quarter sales for Texas Instruments Inc., a key rival of Broadcom in the market for cell phone chips.
Analysts expect Texas Instruments to report a 33% drop in sales and earnings, in part because of more competition for cell phone chips, according to a MarketWatch report.
Dallas-based Texas Instruments is set to report results Monday.
The company has been hurt as cell phone makers have diversified chip supplies. Nokia Corp., Texas Instruments’ biggest customer, has given some business to Broadcom.
The bleak outlook for Texas Instruments outweighed a warning for Broadcom and others from Needham & Co. chip analyst N. Quinn Bolton.
He revised estimates Friday for Broadcom and other chipmakers, saying he sees a 15% to 20% drop in fourth-quarter sales at the companies versus the third quarter.
