Avago Technologies Ltd (NASDAQ:AVGO) might not ring bells as a popular technology company; yet, this Singaporean company has its roots in the West. Avago started as the semiconductor products division of Hewlett-Packard in 1961 before its spin-off. Avago is a 16.05 billion company that designs, develops and supplies a range of analog semiconductor devices with a focus on III-V based products.
Avago is making waves after recent news that the company is set to join the S&P 500 GICS (Global Industry Classification) Semiconductors Sub-Industry index tomorrow. Avago’s promotion into the S&P 500 from its position in the Russell 3000 came after its acquisition of LSI Corporation in a deal valued at $6.6 billion.
Many investors are scared that Avago might be on the edge of a precipice because its $64.25 close yesterday is near its 52-week high. However, I strongly believe that the company has much upside potential going forward and I believe that the stock will obtain support at the current levels.
— Daily Option Alerts