Qorvo Has Become a Favorite 5G Play

5G Chip

Qorvo Inc. (NASDAQ: QRVO) is the world’s leading chip manufacturer produces radio frequency solutions for broadband communications.

Based in the U.S., it continues to benefit the 5G network rollout and from the fact that the new generation of smartphones must be equipped with 5G reception.

Customers for Qorvo’s 5G chips include smartphone manufacturers such as Apple, Samsung, and Huawei.

It also provides tech for high-speed wireless solutions in cloud networks, data centers, companies, private households, satellite transmissions, and military facilities.

There are a few trends that are make Qorvo as a 5G stock even more attractive today.

Qorvo Sales Expected to Rise

Over the past three years, revenues at Qorvo increased by an average of +6%. Meanwhile, profits climbed a slightly stronger +15%.

For Q3 20/21, the company recently reported a +27% year-over-year increase in revenue to $1.1 billion and a +66% increase in earnings to $3.08 per share. Analysts’ expectations were well below that, at $1.07 billion in revenue and $2.68 in earnings per share and were significantly exceeded. Earnings growth has averaged a strong +45% over the last three quarters.

However, for the full year 20/21, analysts expect per-share earnings to grow significantly by +50 % from $6.31 in the previous year to $9.44. At the same time, sales are expected to rise by +23% to just under $4 billion. In 21/22, earnings per share are expected to reach $10.34 on $4.4 billion in sales (+10%).

That will likely make the direction of this chart the norm for the years ahead.

Qorvo 5G Stock

Shares of QRVO have followed an upward trend for years, climbing from one all-time high to the next. And major investor interest in the share is also high. Shares in the company held by institutional investors such as funds and investment houses rose for eight quarters. That is also very positive.

5G technology has proven to be a growth accelerator for the high-frequency chip provider. Qorvo’s chips are considered market leaders and are being installed in more and more smartphones, enabling them to exploit the potential of the new, fast 5G network.

Sooner or later, all smartphones and tablets will have to be 5G-capable in the future. The company can expect many lucrative large orders. Also, there are other growth areas such as the “Internet of Things.”

Companies will need Qorvo chips from Qorvo for the wireless networking of machines and devices. At present, the Qorvo share, which is relatively inexpensive in terms of its P/E ratio, is consolidating somewhat. You should absolutely add this stock to your Watchlist.

Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.
Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.

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