Last January, we introduced our readers to CEVA Inc. (CEVA), which designs and licenses signal processors and other chips. The investment thesis is simply this:
- The handset and base station business will get a jolt from 5G.
- The company will benefit from the growth in other industries like IoT, automotive and industry 4.0.
- The capital light model allows for significant operational leverage.
Of course that article was written when Covid-19 was an emerging problem in China, not a global health pandemic upending the world economy, and in the meantime the company also produced