OLED displays are starting to replace LCD screens on smartphones, with Samsung the leading producer and consumer of such displays. But other display manufacturers are adding OLED factory capacity to respond to the rising demand. Apple ( AAPL ) is reportedly using OLED displays for its upcoming iPhone 8. OLED displays boast richer colors, darker blacks, a faster refresh rate and lower power consumption than liquid crystal display screens. OLED displays also are thinner and flexible, allowing for new hardware designs. IBD'S TAKE: Universal Display is ranked No. 7 on the IBD 50 list of top-performing growth stocks. "We see smartphones as the key application over the next few years," Ho said. "Beyond that, we see TV as the next big opportunity, while notebooks, tablets, automotive and wearables are likely to remain niches." Universal Display is a pure-play in the secular trend and has a strong portfolio of intellectual property and patented OLED materials, he said.