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Comms chips

Sigma Bounces Back

3:25 PM -- NOT LAS VEGAS, Calif. -- "Enjoying" CES vicariously through the news wires ...

Sigma Designs Inc. (Nasdaq: SIGM) took a bath yesterday after the long-awaited competition with Broadcom Corp. (Nasdaq: BRCM) seemed to arrive. Broadcom and probably STMicroelectronics NV (NYSE: STM) are expected to get Microsoft Corp. (Nasdaq: MSFT) MediaRoom certification eventually, spoiling a monopoly Sigma has been enjoying.

News of Broadcom getting into Microsoft's IPTV plans sent Sigma stock down $6.53 (14.8%) to $50.55 yesterday. (See Broadcom, Microsoft Team.)

But wait -- the cavalry has arrived. A Deutsche Bank AG analyst is saying Broadcom isn't MediaRoom certified yet. Seeking Alpha has some details -- and also pointed out yesterday that Sigma stands to benefit if HD DVD continues to struggle.

Sigma shares are up $3.95 (8.9%) at $47.94 in response.

— Craig Matsumoto, West Coast Editor, Light Reading

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