Qorvo
QRVO
$95.56
-0.78%
Qorvo, Inc. is a leading semiconductor company specializing in radio frequency (RF) solutions, including filters, power amplifiers, and front-end modules for smartphones, as well as products for wireless infrastructure, defense, and aerospace. Formed from the merger of RF Micro Devices and TriQuint Semiconductor, Qorvo holds a strong market position as one of the top RF suppliers, competing directly with Skyworks and Broadcom. The current investor narrative centers on the company's pending merger with Skyworks, announced in early 2026, which has introduced significant uncertainty regarding integration risks, regulatory approvals, and the combined entity's competitive strategy. Additionally, Qorvo is navigating a cyclical downturn in the smartphone market, with recent quarterly revenue declining year-over-year, while investors debate the potential for recovery in 5G and IoT demand.…
QRVO
Qorvo
$95.56
Related headlines
Investment Opinion: Should I buy QRVO Today?
Based on the analysis, I rate QRVO as a Hold. The stock is attractively valued on forward earnings (12.32x PE) and has a strong balance sheet, but the pending merger introduces significant uncertainty. The analyst consensus is 'hold' with an average target price of $90.77, implying a downside of -7.5% from the current price of $98.11, which suggests the stock is fairly valued at current levels.
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QRVO 12-Month Price Forecast
The AI assessment is neutral, reflecting the balance between attractive valuation and significant merger-related uncertainty. The low forward PE and potential synergies are positive, but the recent revenue decline and analyst targets suggest limited upside. The stock could be a good value if the merger succeeds, but the risks are substantial. I would upgrade to bullish if the merger closes and revenue growth resumes, and downgrade to bearish if the merger fails or demand deteriorates further.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Qorvo's 12-month outlook, with a consensus price target around $90.77 and implied upside of -5.0% versus the current price.
Average Target
$90.77
0 analysts
Implied Upside
-5.0%
vs. current price
Analyst Count
—
covering this stock
Price Range
$66 - $105
Analyst target range
The target price range spans from a low of $66.00 to a high of $105.00, indicating a wide dispersion of expectations. The low target likely reflects concerns about the merger integration, potential antitrust issues, or a prolonged downturn in the smartphone market, while the high target assumes successful execution of the merger and a robust recovery in 5G demand. The wide spread (39% between low and high) underscores the high uncertainty surrounding the stock's future. Recent institutional ratings show a mix of actions, with some firms like Barclays turning more bullish and others like Mizuho turning bearish, reflecting the divergent views on the merger's outcome and the company's standalone prospects.
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Bulls vs Bears: QRVO Investment Factors
Qorvo presents a mixed picture: the stock is undervalued on forward metrics and has a strong balance sheet, but faces near-term revenue declines and significant merger-related uncertainty. The bull case hinges on successful Skyworks integration and a recovery in 5G demand, while the bear case centers on execution risks and prolonged market softness. Currently, the bearish factors—revenue decline and merger risk—appear slightly more dominant, but the low forward PE and potential synergies provide a compelling upside if execution succeeds. The most critical tension is the outcome of the merger: if it closes smoothly and delivers synergies, the stock could re-rate higher; if it fails or faces regulatory hurdles, the downside could be substantial.
Bullish
- Undervalued on Forward Earnings: QRVO trades at a forward PE of 12.32x versus a trailing PE of 21.13x, implying the market expects substantial earnings growth. The PEG ratio of 0.04 is extremely low, suggesting the stock is undervalued relative to its expected growth, even accounting for cyclicality.
- Strong Balance Sheet and Liquidity: The company has a current ratio of 3.24 and a debt-to-equity ratio of 0.46, indicating a solid liquidity position and manageable leverage. This provides financial flexibility to navigate the merger and industry downturn.
- Merger Synergies Potential: The pending merger with Skyworks could unlock significant cost synergies and create a dominant RF supplier. The exchange offers for Qorvo's senior notes are a step toward integration, and successful execution could boost profitability and market share.
- Recent Price Momentum: The stock has rebounded strongly, up 17.58% in the past month and 16.19% over six months, currently trading at $98.11, near the upper end of its 52-week range (77.5% of the range). This suggests improving investor sentiment and potential for further upside.
Bearish
- Revenue Decline in Latest Quarter: Q4 FY2026 revenue fell 7.0% year-over-year to $808.3 million, reflecting continued softness in the smartphone market. This decline, despite a sequential improvement, indicates demand challenges that could persist.
- Merger Integration and Regulatory Risks: The Skyworks merger introduces significant execution risk, including potential antitrust hurdles and integration challenges. The wide analyst target range ($66-$105) reflects this uncertainty, and any delays or unfavorable terms could pressure the stock.
- Underperformance vs. Market: Over the past year, QRVO is up only 8.22% versus the S&P 500's 20.37%, underperforming by over 12 percentage points. This relative weakness suggests persistent headwinds and may continue if the merger faces setbacks.
- High Volatility and Cyclicality: With a beta of 1.449, the stock is 44.9% more volatile than the market, amplifying downside risk. The semiconductor industry is cyclical, and the current downturn in 5G and smartphone demand could deepen, hurting earnings.
QRVO Technical Analysis
Qorvo's stock is in a recovery phase, having rebounded strongly from its 52-week low of $74.92, but it remains below its 52-week high of $109.49. Over the past year, the stock is up 8.22%, while the S&P 500 has gained 20.37%, indicating significant underperformance. The current price of $98.11 sits at 77.5% of the 52-week range, suggesting room for further upside but also potential resistance near the highs. The stock's beta of 1.449 indicates it is 44.9% more volatile than the market, amplifying both gains and losses.
Beta
1.45
1.45x market volatility
Max Drawdown
-23.8%
Largest decline past year
52-Week Range
$75-$109
Price range past year
Annual Return
+7.3%
Cumulative gain past year
| Period | QRVO Return | S&P 500 |
|---|---|---|
| 1m | +6.8% | +2.5% |
| 3m | -10.2% | +2.7% |
| 6m | +16.2% | +11.1% |
| 1y | +7.3% | +20.5% |
| ytd | +10.8% | +12.3% |
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QRVO Fundamental Analysis
Qorvo's revenue has been volatile, with the most recent quarter (Q4 FY2026, ended March 28, 2026) showing revenue of $808.3 million, a 7.0% decline year-over-year. This follows a pattern of mixed results: Q3 FY2026 revenue was $993.0 million (up 8.4% YoY), while Q2 FY2026 revenue was $1,058.5 million (up 1.1% YoY). The company's revenue segments show ACG (Advanced Cellular Group) contributing $512.3 million, HPA (High Performance Analog) $202.7 million, and CSG (Connectivity and Sensors Group) $93.3 million, indicating a heavy reliance on the smartphone market. The YoY decline in the latest quarter suggests ongoing demand softness, but the sequential improvement from Q1 FY2026's $818.8 million hints at stabilization.
Quarterly Revenue
$808277000.0B
2026-03
Revenue YoY Growth
-7.0%
YoY Comparison
Gross Margin
48.9%
Latest Quarter
Free Cash Flow
$679561000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is QRVO Overvalued?
Given that Qorvo is profitable, the PE ratio is the primary valuation metric. The trailing PE is 21.13x, while the forward PE is 12.32x, implying the market expects significant earnings growth. This gap suggests that analysts anticipate a strong recovery in profitability, likely driven by cost synergies from the Skyworks merger and a rebound in demand. The PEG ratio of 0.04 is extremely low, indicating that the stock is undervalued relative to its expected earnings growth, though this metric should be interpreted with caution given the cyclical nature of the semiconductor industry.
PE
21.1x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 11x~75x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
10.3x
Enterprise Value Multiple
Investment Risk Disclosure
Financial and operational risks are notable. Qorvo's revenue declined 7.0% YoY in Q4 FY2026, and the company's net margin is thin at 9.2%, leaving little room for error. While debt-to-equity is moderate at 0.46, the company's interest expense of $17.8 million in Q4 adds pressure. The heavy reliance on the smartphone market (ACG segment contributed $512.3 million of $808.3 million revenue) creates concentration risk, and any further downturn in handset sales could hit earnings. Free cash flow of $679.6 million TTM provides some cushion, but the merger could strain cash reserves.