NEW YORK (TheStreet) -- For all the talk about the seemingly depressed nature of the semiconductor space, where companies like Broadcom (BRCM) are fighting to maintain lofty growth expectations, Avago Technologies (AVGO), coming off two consecutive beat-and-raise quarters, remains one of the best-kept growth secrets on the market.Perhaps "secret" is not the proper term to use given that the stock is up 25% for the year to date. But unlike Qualcomm ( QCOM), and to a lesser extent Texas Instruments ( TXN), Avago has had little media coverage. Here's the thing: As with Qualcomm and Broadcom, Avago enjoys excellent exposure in the wireless handset market. The company is prominently featured in the products of both Apple ( AAPL) and Samsung ( SSNLF). So when average selling price (ASP) of high-end mobile devices began to come down, which incited fear of saturation and margin pressure for the likes of Broadcom, Avago was still able to grow market share. I'm not going to tell you that Avago has surpassed Qualcomm or that it's even close to launching a threat to Qualcomm's 50% share of the wireless market. But what I do know is Avago has been using its next-generation FBAR system, or Film Bulk Acoustic Resonator, to enable multi-band phones. These are the types of phones that are able to operate in multiple regions of the world. Essentially, Avago's FBAR system can allow device manufactures like Apple and Samsung to design one phone that can operate on virtually any network. Band fragmentation (among other things) has been one of the biggest headaches for hardware companies since they increase production costs. With Avago's FBAR system, Apple and Sumsung won't have to build various versions of their devices just to support multiple carrier frequencies.
What's more, as with Broadcom, Avago also has a strong networking business, which grew in the recent quarter by 16% year over year, helped by better-than-expected shipments of Cisco ( CSCO) equipment. However, and perhaps even more impressive than the revenue growth, is that with the 19% sequential surge in operating income, Avago is turning itself into a strong profit producer. On a non-GAAP basis, that figure was closer to 21%, which was enough for a 9% beat. Another thing to consider is that given how strong of a quarter this was, management still raised guidance -- suggesting the company doesn't expect this momentum will be stunted anytime soon. Although Qualcomm has a strong lead in this market and offers similar-to-greater advantages in its partnerships with Apple and Samsung, I believe the near-term share gain opportunities are greater in Avago. Follow @saintssense This article was written by an independent contributor, separate from TheStreet's regular news coverage.