Qorvo’s guidance boost helped tech stocks roar higher, Jim Cramer says

Qorvo gave a boost to multiple stocks on the market after the chipmaker increased guidance for its current quarter, CNBC’s Jim Cramer said Wednesday.

Investors can expect the pin action, or the events of one company impacting the stock of another, to carry over into the next trading day as buyers come back to the market after a multiday pullback, the “Mad Money” host said.

“Tomorrow, I expect the Apple bulls to resurface, the Zoom acolytes to speak up and the semiconductor analysts to raise numbers across the board thanks to Qorvo,” Cramer said.

Qorvo shares surged more than 7% to a $122.71 close after the company improved its financial forecast given that demand for its advanced 4G and 5G mobile products was better than previously projected. Qorvo, whose products are used in WiFi, smartphones and the internet of things, now expects to bring $1.03 billion in revenue on the high end, up from an initial $955 million prediction, and produce about $2.14 of adjusted earnings per share at the midpoint of its guidance, up from $1.90.

The company is expected to report fiscal second-quarter earnings late next month.

Cellphone chipmakers such as Skyworks Solutions, NXP Semiconductors and Qualcomm saw their stocks rise between about 4% and 5%. The stocks of industrial semiconductor producers such as Texas Instruments and Analog Devices grew more than 2%. AMD and Nvidia, two semiconductor manufacturers that Cramer considers to be the most important in the market, and Broadcom gained between 2.7% and 6.7%. Marvell Technology, another 5G play, also posted a 5% run.

“If Qorvo’s moving lots of chips,” then presume cellphones must be in good shape,” Cramer said. “In the last few days, bearish analysts have mauled Apple,” but expect investors Thursday to turn bullish on the stock “because Qorvo gave it a reason to rebound.”

In the broader market, the Dow Jones added more than 439 points for a 1.6% gain to 27,940.47. The S&P 500 rose 2% to 3,398.96, and the Nasdaq Composite posted a 2.7% advance to 11,141.56.

“We had a dramatic decline in tech late last week and yesterday; those same tech stocks roared higher today,” Cramer said.

“Sooner or later we’ll figure out what’s driving the retailers and the railroads,” he said. “We might even get an explanation for the puzzling run in Caterpillar. Until then, though, we don’t really know what this rebound’s made of or if it’s got staying power.”

Disclosure: Cramer’s charitable trust owns shares of Apple, Nvidia, Broadcom and Marvell Tech.

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