Will This Apple Inc. (AAPL) Supplier Come Through?

Benefiting from the data boom and more

Apart from the mobile business, TriQuint’s networking and infrastructure business has been doing well, and grew 8% in the previous quarter. Going forward, TriQuint expects this business to grow further on the back of a jump in shipments of 100 gigabit products. Also, TriQuint has landed design wins at important infrastructure clients such as Huawei, ZTE, and Ericsson, and they should help TriQuint ride the improvement in infrastructure spending.

TriQuint believes that it is well positioned to benefit from the data boom, and the growth in connected devices will open up more markets for its products, such as Wi-Fi modules and RF solutions. In addition, TriQuint also supplies chips to the defense industry and this business grew 32% in the previous quarter. Going forward, the company expects upgrades in fighter aircraft and radar applications to help it derive more revenue from this segment, despite the near-term uncertainty over defense spending.

The takeaway

The Street is elated at TriQuint’s optimism but the company needs to deliver. After the pop, TriQuint shares are up around 13% so far this year, and if the company’s prospects materialize, they can go even higher. However, I think it would be prudent to not go overboard and initiate a big position in TriQuint, as the company needs to deliver a solid quarterly report at least once. One might scoop up some shares at these levels, and hope that TriQuint is able to deliver what it promised.

The article Will This Company Finally Deliver? originally appeared on Fool.com.

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