TriQuint Semiconductor’s Sweet Spot

Let’s talk about TriQuint Semiconductor (NASDAQ:TQNT).

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This week, the stock is trading at a new 52-week high, on very convincing volume. The company focuses on amplifiers, frequency converters and optical components. This puts it in a sweet spot of several different industries.

58% of its revenue comes from mobile, 29% comes from network infrastructure and 13% from defense and aerospace. It’s a radio frequency, remember “RF” -- that’s the big deal these days. They are using the cellular-base stations and satellites, optical networks and radar systems. Execution has been phenomenal. Management has been beating the Street the last 3 quarters, every time by huge margins.

The Street has reacted with higher consensus going into the rest of this year, and also next fiscal year. I still, though, think they’re too conservative. In the meantime, as I said, the stock is breaking out closing above $17.70, my next target would be $20. Note, the stock used to change hands at $60 back in 2000! It’s finally living up to the hype.

Investors with patience I think could really do very, very well in this. The company is merging with RF Micro Devices (NASDAQ:RFMD), so that deal should be done by the end of the year. Together, it would make a huge juggernaut.