5 Semi Stocks To Watch On Apple's Q2 Results

After months of doom and gloom predictions about a horrible quarter for Apple Inc. AAPL, the company surprised Wall Street with some big numbers on Tuesday. While that’s certainly good news for Apple investors, analysts say it’s also good news for Apple suppliers.

KeyBanc analyst John Vinh said Apple’s quarter was better-than-feared for a handful of suppliers, including Broadcom Inc AVGO, Cirrus Logic, Inc. CRUS, Qorvo Inc QRVO, Skyworks Solutions Inc SWKS and Synaptics, Incorporated SYNA.

“However given the increased inventories, we still see risk to forward guidance but view risk/reward as more balanced ahead of earnings given lowered expectations,” Vinh said.

Here’s a rundown of what he had to say about each stock:

• Broadcom: Vinh said weak price elasticity will likely push Apple to up its mix of lower-end LCD iPhones to 50 percent, which will dampen Broadcom’s growth opportunity. KeyBanc has a $280 price target for the stock.
• Cirrus: Weak demand for both the iPhone and the Samsung Electronics Co Ltd SSNLF S9 puts Cirrus Logic estimates at risk. KeyBanc has a $40 fair value estimate for the stock.
• Qorvo: S9 and iPhone weakness will be partially offset by iPhone content gains and Chinese handset demand growth. KeyBanc has a fair value estimate of between $70 and $75 for the stock.
• Skyworks: Chinese handset demand should help offset S9 and iPhone weakness for Skyworks as well. KeyBanc has an Overweight rating and $125 price target for the stock.
• Synaptics: A higher mix of LCD iPhones is a positive for Synaptics because the LCD model COF technology is a major higher-priced growth opportunity. KeyBanc has an Overweight rating and $60 price target for the stock.

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