NEW YORK (TheStreet) -- The last time we discussed the prospects of Avago Technologies (AVGO) , there were tons of reasons to be bullish on the stock, not the least of which was Avago's close relationship with Apple (AAPL) . The iPhone maker accounts for 10% of Avago's sales, which means what's good for Apple is good for Avago. And "good" has been an understatement.
In February, we discussed the Avago's long-term growth potential, given its recent investments in areas like China. At the time, research firm IDC predicted China would see roughly $500 million in smartphone sales for 2015, growing three times faster than projected U.S. unit shipments.
Back then, making an investment case for Avago was simple: Avago + China expansion = higher profits. At the time, its shares traded around $112. Three months later, the stock has climbed as high as $136, gaining as much as 21%. On Wednesday morning, it was trading in the $132.50 range. But it's showing no meaningful signs of slowing down, especially since Apple estimates are still climbing.
Avago is up more than 30% on the year, dominating not only the broader averages, but also the Philadelphia Semiconductor Index (SOXX), which is up just 5% so far in 2015. Just as impressive, Avago's gains have outpaced Apple, which is up an impressive 20% on the year.
Why does all of this mean? Consumers love their mobile devices. And Avago, headquartered in Singapore, has quickly built itself into one of the premier wireless technology companies on the market, growing earnings and revenue in 2014 at rates of 52% and 70%, respectively.