Shares of Skyworks Solutions (SWKS) - Get Report and Qorvo (QRVO) - Get Report were both climbing Thursday after an analyst at Cowen upgraded the semiconductor companies to outperform from market perform.
Skyworks Solutions rose 3.6% to $83.64 while Qorvo climbed 3% to $75.50.
Analyst Karl Ackerman also increased his price target on Qorvo to $90 from $75, saying in a note that the stock's risk-reward is skewed to the upside with $7.50 to $8 a share of earnings possible in 2021.
He also said that while the U.S.-China trade war is not likely to end soon, a resolution over the next few quarters may add $500 million of revenue and $1 of earnings per share to 2020 estimates for the company.
Ackerman increased his target for Skyworks to $95 from $80. The company's content continues to ramp during the current iPhone cycle, he said, and, again, higher radio-frequency content in a 5G-enabled phone presents unit upside potential in 2020.
In addition, Chinese tech company Huawei is 90% discounted into 2020 estimates, which could drive $350 million in sales and 60 cents in EPS upside if the U.S. and China resolve their trade issues.
Ackerman also said WiFi 6m is "finally here," enabling Skyworks to dominate in smart-home applications.