While the launch of the iPhone 12 series was delayed last year due to COVID-19 pandemic-related restrictions, Apple Inc. (AAPL) is expected to launch iPhone 13 by the end of September. In addition to a super-fast 5G modem, the model is expected to have a better…
display and a significantly improved camera. And according to a Bloomberg report, AAPL is boosting its production by 20% to 90 million units, anticipating high demand.
Forty-four percent of iPhone owners are expected to buy the new iPhone, according to a survey by SellCell. iPhone sales accounted for 48.6% of AAPL’s net sales in the third quarter (ended June 26, 2021). Also, the sales from its iPhone segment increased 49.8% year-over-year to $39.57 billion in the third quarter. While AAPL is expected to benefit significantly from the forthcoming iPhone 13, some quality iPhone suppliers will also likely benefit. In addition, they could witness a secular demand uptick because the 5G cycle is just getting started.
Against this backdrop, we think it could be wise to scoop up the shares of fundamentally strong iPhone supplier stocks Broadcom Inc. (AVGO – Get Rating), Qorvo, Inc. (QRVO – Get Rating), and LG Display Co., Ltd. (LPL – Get Rating). They are expected to gain substantially from the sale of the iPhone 13 and other industry tailwinds.
Global technology leader AVGO in San Jose, Calif., designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions. The company provides several chips used in the iPhone, including chips for Wi-Fi and Bluetooth and an Avago-branded RF front-end chip that helps the phone connect to wireless networks.
AVGO announced new, industry-first capabilities for Value Stream Management (VSM) on June 15 in its ValueOps software portfolio, which combines Clarity’s proven investment planning features with advanced Agile management capabilities of Rally software.
The company also announced the availability of its expanded portfolio of 100Gb, 200Gb, 400Gb, and 800Gb electro-optics platform solutions on June 3 for data center and cloud networks. This expands AVGO’s product portfolio significantly.
For its fiscal second quarter, ended May 2, 2021, AVGO’s net revenue came in at $6.61 billion, representing a 15.1% year-over-year rise. The company’s revenue from semiconductor solutions increased 19.7% year-over-year to $4.82 billion. Its non-GAAP net income increased 28.3% year-over-year to $2.98 billion, while its non-GAAP EPS increased 28.8% year-over-year to $6.62. Furthermore, its adjusted EBITDA came in at $3.96 billion, up 23.4% year-over-year.
AVGO’s revenue is expected to increase 14.1% year-over-year to $27.24 billion in its fiscal year 2021. The company’s EPS is expected to grow 18% year-over-year to $7.49 for the quarter ending October 31, 2021. In addition, it has surpassed the Street’s EPS estimates in each of the trailing four quarters. Over the past three months, the stock has gained 12.9% to close Friday’s trading session at $486.16.
AVGO’s strong fundamentals are reflected in its POWR Ratings. So, the stock has an overall A rating, which equates to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
The stock has a B grade for Growth, Stability, Sentiment, and Quality. We have also graded AVGO for Value and Momentum. Click here to access all AVGO’s ratings. AVGO is ranked #5 of 99 stocks in the B-rated Semiconductor & Wireless Chip industry.
Recently the Reitmeister Total Return Portfolio (RTR) closed a winning trade in AVGO for a 25% gain. Learn more about the RTR service here.
QRVO is a leading provider of technologies and RF solutions for mobile, infrastructure, defense, and aerospace applications. The Greensboro, N.C.-based company operates through two segments: Mobile Products and Infrastructure and Defense Products. And on June 7, it announced…
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