Shares of Broadcom (NASDAQ: AVGO), the semiconductor company known for networking and infrastructure solutions, were moving higher again today. This followed gains from a better-than-expected earnings report, the closure of its acquisition of VMware, and an analyst upgrade yesterday.
Today, the stock was gaining on news of a new partnership with Caltech. As a result, the stock was up 3.5% as of 1:30 p.m. ET.
Broadcom jumps again
In a press release last night, Broadcom and Caltech announced a new multiyear partnership to advance quantum science research and discoveries to develop new innovative technologies and applications.
Broadcom will make a significant investment in the Broadcom Quantum Laboratory at Caltech, a physical space where experts in fields like quantum computing, quantum sensing, and quantum engineering, and the two partners will host an annual symposium on relevant research. CEO Hock Tan said, “This multiyear investment and engineering collaboration reinforces our continued commitment to supporting advanced R&D [research and development] and represents our relentless pursuit of innovation.”
What the partnership means for Broadcom
Caltech is regarded as one the world’s foremost institutions for quantum science, and the partnership could give Broadcom an edge in the emerging quantum computing field. Quantum computing uses the laws of quantum mechanics to solve problems that are too complex for traditional computers, and its use cases range from artificial intelligence (AI) to drug discovery.
The news, which comes shortly after the closure of the VMware acquisition, shows the company is still squarely focused on research and development, even as it will spend the next year integrating VMware and cutting costs at the new unit.
The partnership with Caltech could also give Broadcom a key pipeline to recruiting new researchers, which can be highly competitive in the tech sector. Given the number of ways this partnership can benefit Broadcom, it’s not surprising investors are reacting positively to the news.
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Why Broadcom Stock Was Climbing Again Today was originally published by The Motley Fool