NEW YORK (TheStreet) -- Shares of Avago Technologies (AVGO) are jumping, up 3.19% to $146 in pre-market trading Thursday, after the company said it would buy fellow chipmaker Broadcom Corp (BRCM) in a cash-and-stock deal valued at $37 billion.
The company which makes chips used in smartphones and supplies parts to Apple (AAPL) for its iPhones, is offering Broadcom shareholders $17 billion in cash and Avago shares valued at $20 billion.
The takeover offer values Broadcom at $54.50 per share. Yesterday, shares of Broadcom closed at $57.16 per share.
In addition, Avago Technologies is slated to release its latest quarterly earnings report after the closing bell today.
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 byThomson Reuters.
In the same quarter of last year, the company earned 85 cents per share on revenue of $701 million.
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.
The company serves three primary target markets including wireless communications, wired infrastructure, and industrial.
Insight from TheStreet's Research Team:
Antonia Oprita commented on Avago Technologies in a recent post on RealMoney.com. Here is what Oprita had to say about the stock: