The fact that
Stocks (ticker: QRVO) Sank the semiconductor sector this year gives a good buy opportunity.
background. The company produces half-frequency (RF) semiconductors, allowing smartphones to communicate with wireless networks.
Qorvo shares have tracked around 17% so far this year, while
iShares PHLX Semiconductor ETF
MKM Partners analyst Ruben Roy on Friday repeated his Qorvo stock buying class, predicting the chip maker will thrive due to its exposure to 5G.
"With commercial 5G networks starting to go into operation, we take a new look at QRVO which remains one of our top ideas exposed to what we expect to be a significant growth market over the next few years," he writes.
Qorvo stock rose 2.1% to close at $ 71.73 on Friday
Analyst estimates 5G base stations can offer an RF chip opportunity of up to $ 1200 per unit.
The shift to 5G is hugely important to semiconductor Analysts expect 5G to deliver 10 to 40 times the current speed of 4G LTE networks, while its lower latency promises to activate new applications from augmented reality and automated self-propelled and cloud gaming plants.
Looking ahead. Roy confirmed his $ 81 price for Quorvo shares, representing 13% up to the current share price.
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