Qorvo's strong quarter 'breathed new life' into chipmakers, 5G plays, Jim Cramer says

• "After selling off over the summer, these 5G stocks they're back and they're better than ever," CNBC's Jim Cramer says.
• "Based on what we heard from Qorvo last week, the business is on fire and you don't want to miss it," the "Mad Money" host says.
• "Best of all, we're still in the early stages" of a long-term theme, he says.

Qorvo's recent quarterly report is a convincing sign that the fifth-generation of technology theme is back in vogue on Wall Street, CNBC's Jim Cramer said Thursday on "Mad Money."

The company's blow-out September quarterly results and strong guidance "breathed new life" into the whole semiconductor cohort, he said, pointing to the stocks of Qualcomm, Skyworks Solutions, Broadcom and Marvell Technology.

"After selling off over the summer, these 5G stocks they're back and they're better than ever," Cramer said. "Based on what we heard from Qorvo last week, the business is on fire and you don't want to miss it."

The 5G segment fell under pressure in the spring as U.S.-China trade tensions escalated and the Trump administration blacklisted business with Chinese telecom giant Huawei. 5G is the next generation of wireless connection that's being rolled out to offer faster download and upload speeds.

Qorvo shares are up more than 25% since Oct. 31 when it reported top- and bottom-line beats in its fiscal second quarter. Components for smartphones was a major boon. The company's guidance for the current quarter came in between $840 million to $860 million, though analysts had forecast $761 million worth of sales at the time, Cramer noted.

The radio-frequency chipmaker is a supplier to communications infrastructure and cellphone companies like Apple, Samsung and Huawei. The stock has climbed from about $58 per share in late May to above $101 at Thursday's close.

"Our December guidance reflects continued robust mobile demand supported by an increase in 5G handset volumes," Qorvo Chief Financial Officer Mark Murphy said.

The semiconductor group has high exposure to the Chinese economy.

"As the Chinese roll out their own 5G network — and yes they are ahead of us — they're packing new phones with not just 5G technology, but also fully integrated 4G technology so they'll work on older networks, too," Cramer said. "Best of all, we're still in the early stages" of a long-term theme.

Qualcomm, another giant communications chipmaker, saw its stock jump more than 6% Thursday after reporting an earnings and revenue beat in its fiscal fourth quarter the day prior.

Cramer said he expects Skyworks, another radio-frequency semiconductor company and Apple supplier, to report a strong quarter as well this coming Tuesday.

"Skyworks sells at less-than 16-times earnings, meaning you're not too late. Plenty of room to roll," the host said.

Broadcom and Marvell Tech are scheduled to report quarterly earnings soon as well.

Progress in U.S.-China trade talks, where officials on both sides reportedly agreed to roll back tariffs, made investors more confident that a "phase one" deal could be reached.

Better trade relations between the world's largest economies could make it easier for American companies to do business with Huawei.

Disclosure: Cramer's charitable trust owns shares of Apple and Marvell Technology.

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