ABN Amro Inc. initiated coverage of Broadcom Corp. with a "hold" rating, suggesting investors take a "wait-and-watch approach." Although ABN Amro called Broadcom the premier name among communications-chip companies, it did not expect any near-term recovery in the market. ABN Amro also predicted U.S. service-provider spending would drop more than 30 percent this year. ABN Amro said Broadcom's strong balance sheet should help it withstand the downturn and predicted that the company should return to its dominant position once recovery occurs. Broadcom stock closed at $26.70 on Oct. 10, up 94 cents.