Buy hot chip stock Broadcom before earnings as an iPhone play: JPMorgan

A Broadcom chip
David Paul Morris | Bloomberg | Getty Images

Broadcom shares are poised for a boost because the chip maker recently had big design wins, including components for the next iPhone, said a JPMorgan analyst in reiterating his overweight rating.

The company is slated to report fiscal third-quarter financial results Thursday after the market close.

Broadcom should beat estimates by JPMorgan and the rest of Wall Street on revenue, margins, earnings per share and free cash flow, wrote analyst Harlan Sur in a note to JPMorgan clients on Tuesday. "The company's diversification efforts are playing out and the team is driving numerous product cycles in the 2H of the year including significant dollar content gains in the next gen iPhone."

More In Pro News and Analysis

CNBC ProCramer sees rough week ahead for market: 'Let stocks come down a little and then do some buying'
CNBC ProEnergy stocks roar toward their best year in three decades amid recovery in oil
CNBC ProHere are Friday's biggest analyst calls of the day: Amazon, Facebook, Ford, GM, Delta, Nike & more