Fast-Growing Broadcom to Join Nasdaq-100 Index

Irvine communications chip maker Broadcom Corp. will become a component of the Nasdaq-100 Index at the start of trading Monday, the Nasdaq Stock Market said Tuesday.

After the announcement, the company’s stock dropped 5%, or $12.75 a share, to close at $239 a share. The company’s market value was more than $53 billion.

The company, which makes silicon systems that enable broad-band digital transmission of voice, video and data, has two classes of common stock. Its Class A stock will be included in the Nasdaq-100 Index. Its Class B stock is not publicly traded.

Broadcom, the fastest-growing company in its industry, will replace Internet media company Lycos Inc., which is being acquired by Terra Networks S.A.