NEW YORK (TheStreet) -- Shares of Avago Technologies (AVGO) were soaring, up 10.16% to $144.64 on heavy volume in afternoon trading Wednesday, ahead of the smartphone semiconductor company's second quarter earnings release, due out after the market closes Thursday.
Shares of Avago Technologies, which makes chips used in smartphones and supplies parts to Apple (AAPL) for its iPhones, are rallying following reports that the company is in advanced talks to buy Broadcom Corp (BRCM), according to The Wall Street Journal.
As of 3:02 p.m. ET today, Broadcom had a market value of about $32.48 billion. Following the report, shares of Broadcom were surging 19.3% to $55.98 in afternoon trading.
TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio says he's watching Avago, and calls it the bellwether, the one that will determine how the higher performing chip stocks do.
For the second quarter ended in April, Wall Street is expecting Avago to report a profit of $2.01 per share on revenue of $1.635 billion, according to analysts surveyed by Thomson Reuters.
In the same quarter of last year, the company earned 85 cents per share on revenue of $701 million.
About 6.12 million shares of Avago have exchanged hands as of 3:02 p.m. ET today, compared to its average daily volume of about 2.11 million shares.
Singapore-based Avago Technologies is a designer, developer and global supplier of a range of analog semiconductor devices with a focus on III-V based products.