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Qorvo's (QRVO) New Solution to Enhance Efficiency of IoT Devices

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Qorvo, Inc. (QRVO - Free Report) recently enhanced wireless connectivity solutions portfolio with smart home communications controller — QPG6100 — in a bid to facilitate faster communications, and boost home network capacity and scalability.

The new communications controller for IoT end devices offers support for multiple ultra-low power wireless protocols simultaneously and is based on the company’s ConcurrentConnect technology. It enables manufacturers to future-proof connected devices such as smart lighting and home sensors.

Qorvo’s QPG6100 features simultaneous multi-standard support through ConcurrentConnect technology into a single-radio System on a Chip (SoC). It supports all home network protocols, allowing devices to receive communication in real time. For instance, Qorvo’s patented methodology permits the user to quickly dim a light bulb via a smartphone without delay.

Further, the latest offering can be integrated with its software development kit, to aid manufacturers in devising advanced IoT devices that concurrently manage data traffic from multiple protocols or standards without latency.

We believe Qorvo is poised to gain traction with the new controller as it simultaneously supports all major wireless protocols to aid designers and homeowners to ensure seamless connectivity despite addition of new devices, and no missed signals.

Qorvo, Inc. Price and Consensus

Qorvo, Inc. Price and Consensus

Qorvo, Inc. price-consensus-chart | Qorvo, Inc. Quote

Increasing proliferation of IoT is fueling the adoption of smart home technology, necessitating the use of effective and efficient sensors, even as new devices are integrated in the network. The increased flexibility provided by the new controller holds promise as it boosts more innovative applications in the smart home domain.

Projections Bode Well

IDC projects global sales of smart home devices to reach 1.4 billion units in 2024 at a five-year CAGR of 14% driven by momentum in adoption of home automation devices and services. Qorvo’s expanding wireless connectivity solutions portfolio pertaining to IoT end devices bodes well in the long haul.

Moreover, IoT devices have been gaining significant traction of late. According to Statista data, the number of connected IoT devices will hit 50 billion by 2030.

Further, IDC expects data generated from connected IoT devices to be 73.1 ZB by 2025, growing from 18.3 ZB in 2019. The analyst firm also expects 55.7 billion connected devices worldwide by 2025, 75% of which are anticipated to be connected to an IoT platform.

Qorvo is well-poised to capitalize on this demand on the back of its robust product portfolio, strengthening IoT capabilities and key offerings.

Wrapping Up

Expanding portfolio bodes well for Qorvo. Robust adoption of the company’s solutions in connectivity domain (Wi-Fi and emerging IoT applications) holds promise.

Also, gains form buyout of ultra-wideband (UWB) software and system solution pioneer, 7Hugs Labs S.A.S., remains noteworthy. It is enabling the acquirer to boost UWB system solutions capabilities and bolster design expertise with focus on mobile, IoT and automotive end-markets.

Further, synergies from Decawave acquisition have significantly expanded Qorvo’s capabilities and positions it well to benefit from growing demand for proximity awareness applications, secure payments and secure access for smartphones, automotive and IoT.

The company is well-positioned to capitalize on the opportunities by leveraging its diversified product portfolio, systems-level expertise, R&D and manufacturing scale, and internal assembly and test capabilities.

Zacks Rank & Other Key Picks

Qorvo currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks in the broader technology sector are Skyworks Solutions (SWKS - Free Report) , Vishay Intertechnology, Inc. (VSH - Free Report) and Ubiquiti Inc. (UI - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for Skyworks Solutions, Vishay Intertechnology, and Ubiquiti are currently pegged at 18.98%, 20.26% and 32.94%, respectively.

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