The novel coronavirus pandemic has failed to dent Qorvo's (NASDAQ:QRVO) momentum in 2020 as the chipmaker has continued to benefit from the rollout of 5G (fifth-generation) wireless networks and smartphones supporting the new networking standard.

Shares of the company have shot up around 50% in the past six months and about 69% over the past year. But investors who have missed this gravy train so far shouldn't be disappointed, as Qorvo stock looks all set to deliver more upside. Here's a look at some of the reasons why this is a great 5G stock to buy in October.

QRVO Chart

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Qorvo is taking off...

Last month, Qorvo management increased its earnings and revenue guidance for the second quarter of fiscal 2021 as demand for mobile chips exceeded the company's expectations. The company now expects $1 billion to $1.03 billion in revenue this quarter, along with earnings of $2.14 per share. Qorvo's original guidance, issued in July, called for $1.90 per share in earnings on revenue between $925 million and $955 million.

Qorvo's updated September quarter guidance means that the company could deliver nearly 26% year-over-year revenue growth over last year's top line of $807 million. EPS growth could come in at nearly 41%, compared to $1.52 per share a year ago. Qorvo anticipates 50% in non-GAAP gross margin for the quarter, which would be a nice increase over the prior-year period's reading of 46.5%.

The impressive growth in these metrics should be enough to justify Qorvo's valuation. The stock has a trailing price-to-earnings (P/E) ratio of nearly 41, while a forward P/E ratio of just 19 points toward an increase in the company's future earnings.

More importantly, Qorvo's 5G catalyst is just getting started. What may seem like a rich valuation might turn out to be a bargain in the future as the world moves toward a new smartphone technology that Qorvo is well-placed to tap into.

Person holding a 5G smartphone.

Image source: Getty Images

...and it has room to fly higher

Strategy Analytics estimates that 5G smartphone sales could hit 250 million units in 2020, up from just 18 million units last year. The firm also points out that Apple, Samsung, and Huawei could corner two-thirds of 5G smartphone sales this year, which is positive for Qorvo as it counts all of them as customers.

The chipmaker has reduced its dependence on Huawei, which should shield it from the sanctions imposed by the U.S. on the Chinese smartphone giant. However, Qorvo gets 33% of its revenue by supplying chips to Apple, while Samsung has used the company's 5G chips in its latest Galaxy S20 smartphones.

Samsung dominated the 5G smartphone market in the U.S. earlier this year, with the Galaxy S20+ accounting for 40% of total shipments. Meanwhile, Apple is reportedly preparing to build 75 million to 80 million 5G iPhones by the end of 2020.

Additionally, the impressive momentum that 5G smartphones are witnessing in 2020 is expected to spill over into the coming years, with a billion devices expected to be shipped by 2025 according to Strategy Analytics. What's worth noting is that 5G devices are expected to account for half of the overall smartphones shipped globally in 2025, indicating that Qorvo could be sitting on a multi-year catalyst.

Qorvo also sees 5G smartphones creating an additional revenue opportunity of $5 to $7 per device. Given that the chipmaker got nearly 60% of its revenue from selling mobile chips last quarter, the advent of 5G should ideally turn out to be a huge tailwind for the company. Qorvo could benefit from higher shipment volumes and more revenue per 5G smartphone in the coming years -- a combination that could make it a top 5G stock.