Qorvo Inc. QRVO recently signed an agreement to acquire Anokiwave, bolstering its presence in the market. The collaboration is set to broaden Qorvo’s opportunities in the defense, aerospace, SATCOM, and 5G markets.
The Acquisition
Based in Boston, MA, Anokiwave is known for its diverse, integrated solutions serving a wide range of customers, from large corporations to small startups globally. The company specializes in mmW Si core chips, packaging design, mmW Silicon technology, phased array antenna integrated circuits (ICs), and System Architecture. Anokiwave’s innovative techniques and designs have significantly reduced critical time-to-market and development costs by over 50%.
The Anokiwave team will merge with Qorvo’s High-Performance Analog segment to develop beamformers and IF-RF solutions for defense phased array and AESA radar, electronic warfare, satellite communications, and 5G applications. The combination of Anokiwave’s technologies and Qorvo’s RF solutions is expected to result in advanced system-in-package offerings, consolidating multiple ICs into a single module, delivering superior performance and efficiency for defense, aerospace, and network infrastructure applications.
Market Impact
As the demand for sophisticated communication systems in defense and aerospace sectors grows with 5G infrastructure, Qorvo’s enhanced capabilities are expected to secure a larger share of the market, potentially leading to increased business deals.
Qorvo’s stock performance is anticipated to receive a boost as it dives into the active array antenna space, contributing to industrial growth, greater diversification, and improved gross margins over time. Operating on a global scale, the combined entity is poised to benefit from an expanded market reach amid rapid technological advancements and a high degree of innovation.
Stock Performance
The stock has experienced a 1.1% decline over the past year, contrasting with the industry’s decline of 11.9%.
Image Source: Zacks Investment Research
Qorvo has a Zacks Rank #3 (Hold).
Key Picks
Arista Networks, Inc. ANET, a Zacks Rank #1 company, is expected to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance the cloud experience.
Juniper Networks Inc. JNPR, a Zacks Rank #2 (Buy), is a leading provider of networking solutions and communication devices, with a long-term earnings growth expectation of 9.9%. The company offers a broad range of routing, switching, and security products.
NVIDIA Corporation NVDA, currently with a Zacks Rank #2, delivered a trailing four-quarter average earnings surprise of 18.99%. NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit.
