The fact that
The stock (ticker: QRVO) is behind the semiconductor sector this year and offers a good buying opportunity.
The background story. The company manufactures radio frequency (RF) semiconductors that enable smartphones to communicate with wireless networks.
The Qorvo share has so far reached around 17% this year, while the share of Qorvo so far was around 17%
iShares PHLX Semiconductor ETF
(SOXX), which tracks a widely used chip index, has gone up 21%
What's new. MKM analyst Ruben Roy confirmed his buy recommendation for the Qorvo share on Friday The chip maker will thrive on its 5G commitment.
"With the launch of the commercial 5G networks, we are taking a fresh look at QRVO, one of the key ideas we think will play a significant role in the growth market for the next few years," he wrote.
The Qorvo Shares rose 2.1% to close at $ 71.73 on Friday.
The analyst estimates that 5G base stations can offer up to $ 1,200 per device opportunity for RF chips.
The shift to 5G is hugely important to the semiconductor and telecoms industries, with analysts expecting 5G to reach 10 to 40x the speed of 4G LTE networks, with lower latency promising new applications, from augmented reality to automated factories, to self-propelled and Cloud Gaming.
Looking to the Future. Roy reiterated his target price of $ 81 for the Quorvo share, an increase of 13% over the current stock price.  Write to Tae Kim at [email protected]