Qorvo
QRVO
$114.17
+1.75%
Qorvo, Inc. is a semiconductor company formed from the 2015 merger of RF Micro Devices and TriQuint Semiconductor, specializing in radio frequency filters, power amplifiers, and front-end modules used in advanced smartphones, wireless base stations, cable TV and networking equipment, and infrastructure and military applications. The company operates in the highly competitive RF semiconductor space, where it is a key supplier to major smartphone OEMs and a niche player in defense and infrastructure markets, competing with the likes of Skyworks and Broadcom. The current investor narrative is dominated by the pending acquisition by Skyworks Solutions, which has driven significant attention and speculation around the stock, including debt exchange offers and consent solicitations for Qorvo's senior notes. This merger-related activity, combined with Qorvo's recent financial performance and exposure to smartphone demand cycles, is the primary driver of debate among investors.…
QRVO
Qorvo
$114.17
Related headlines
Investment Opinion: Should I buy QRVO Today?
Based on the synthesis of data, the recommendation is Hold. The core thesis is that Qorvo's strong momentum and attractive forward valuation are offset by analyst targets implying downside and revenue declines, with the pending merger adding uncertainty. The consensus recommendation is 'hold' with an average target price of $90.17, 21.0% below the current price, suggesting limited near-term upside.
Supporting evidence includes the forward PE of 14.44, which is below the industry average of 20-25x, and a PEG ratio of 0.04, though distorted. Revenue declined 4.15% year-over-year in Q1 2027, but gross margin improved to 51.09% from 40.52% a year earlier. Free cash flow remains positive at $649.5 million trailing twelve months, and the balance sheet is healthy with a current ratio of 3.24. However, the stock trades at a PS ratio of 1.95 and EV/EBITDA of 10.26, which are not exceptionally cheap relative to peers.
The biggest risks are the merger uncertainty, smartphone market cyclicality, and high volatility (beta 1.455). The rating would upgrade to Buy if the forward PE compresses below 12x or if revenue growth turns positive, and downgrade to Sell if revenue declines accelerate beyond 10% or if the merger fails. Relative to its history, the trailing PE of 21.13 is near the lower end of its range, but the stock appears overvalued based on analyst targets, suggesting a fair to slightly overvalued status.
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QRVO 12-Month Price Forecast
Qorvo presents a balanced risk-reward profile. The stock's strong momentum and discounted forward valuation are attractive, but analyst targets suggest it is overbought, and revenue trends are weak. The pending merger with Skyworks is a double-edged sword: it could unlock value, but also introduces execution risk. The high beta makes it unsuitable for risk-averse investors. I would upgrade to bullish if the merger closes smoothly and revenue stabilizes, and downgrade to bearish if revenue declines accelerate or the merger faces obstacles.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Qorvo's 12-month outlook, with a consensus price target around $90.17 and implied upside of -21.0% versus the current price.
Average Target
$90.17
0 analysts
Implied Upside
-21.0%
vs. current price
Analyst Count
—
covering this stock
Price Range
$66 - $105
Analyst target range
There are 12 analysts covering Qorvo, with a consensus recommendation of 'hold' (recommendation mean of 3.0). The average target price is $90.17, which implies a downside of approximately -21.0% from the current price of $114.17. The consensus is neutral to bearish, with no clear buy signals. The target price range is wide, from a low of $66.00 to a high of $105.00, reflecting significant uncertainty. The high target of $105.00 still implies a downside of -8.0% from the current price, suggesting that even the most optimistic analysts see limited upside. The low target of $66.00 implies a downside of -42.2%, pricing in severe margin compression or competitive losses. The wide spread indicates high uncertainty, likely due to the pending merger and integration risks. Institutional ratings show a mix of neutral and underperform actions, with recent downgrades from Mizuho (Underperform) and Wolfe Research (Peer Perform), while Barclays upgraded to Overweight in April 2026. The overall sentiment is cautious, and the lack of strong buy ratings suggests limited conviction in the stock's near-term prospects.
Bulls vs Bears: QRVO Investment Factors
The bull case for Qorvo rests on its strong price momentum, attractive forward valuation, healthy balance sheet, and potential merger synergies. However, the bear case is compelling: analyst targets imply substantial downside, revenue is declining, and the stock is highly volatile and near its 52-week high. Currently, the bear evidence appears stronger, as the consensus 'hold' rating and average target of $90.17 suggest limited upside, while the merger uncertainty adds risk. The most critical tension is whether the Skyworks acquisition will close on favorable terms and unlock value, or whether integration challenges and smartphone market weakness will pressure the stock. If the merger fails or is delayed, the downside could be significant given the current premium valuation.
Bullish
- Strong momentum and relative strength: QRVO has gained 24.72% over the past year, significantly outpacing the S&P 500's 15.01% gain. Over the past three months, the stock is up 30.38% versus the S&P 500's 3.34%, resulting in a relative strength of +27.04%. This strong momentum suggests robust investor interest and positive sentiment.
- Attractive forward valuation: The forward PE ratio is 14.44, well below the trailing PE of 21.13 and the semiconductor industry average of 20-25x. This discount implies that the market expects significant earnings growth, potentially driven by merger synergies or operational improvements. The PEG ratio of 0.04, while distorted by a low earnings base, also suggests undervaluation relative to growth prospects.
- Healthy balance sheet and cash flow: Qorvo maintains a debt-to-equity ratio of 0.463 and a current ratio of 3.24, indicating solid liquidity. The company generated $649.5 million in trailing twelve-month free cash flow, with $115.3 million in the latest quarter. Cash reserves of $1.33 billion provide financial flexibility.
- Improving profitability metrics: In Q1 2027, Qorvo reported a net margin of 10.93% and a gross margin of 51.09%, up from 3.68% and 48.87% in the prior quarter, respectively. Operating margin also improved to 12.33% from 3.90%. These gains reflect better product mix and cost management.
Bearish
- Analyst targets imply significant downside: The consensus analyst target price is $90.17, which is 21.0% below the current price of $114.17. Even the highest target of $105.00 implies an 8.0% downside. This suggests that analysts view the stock as overvalued after its recent rally.
- Revenue decline and smartphone dependence: Qorvo's revenue in Q1 2027 was $784.8 million, down 4.15% year-over-year. The largest segment, ACG, which serves smartphone customers, contributed $476.6 million and is vulnerable to cyclical demand. The sequential decline from Q3 2026's $993.0 million highlights this sensitivity.
- High volatility and overbought conditions: With a beta of 1.455, QRVO is 45.5% more volatile than the market. The stock is trading at $114.17, near its 52-week high of $121.09, and has surged 13.46% in the past month. This raises the risk of profit-taking and a pullback, especially given the max drawdown of -23.76% over the past year.
- Mixed profitability and declining free cash flow: Despite recent margin improvement, net income of $85.8 million in Q1 2027 remains below Q3 2026's $164.1 million. Free cash flow dropped to $115.3 million from $255.0 million in the prior quarter, and the trailing PE of 21.13 is near the lower end of its historical range, but earnings volatility persists.
QRVO Technical Analysis
QRVO has been in a sustained uptrend over the past year, with a 1-year price change of +24.72%, significantly outpacing the S&P 500's +15.01% gain. The stock is currently trading at $114.17, which is 93.6% of its 52-week range (52-week low of $74.92 and high of $121.09), indicating strong momentum and proximity to its highs. This positioning suggests the stock is in a bullish phase, but also raises the possibility of overextension, especially given the recent sharp rally. Over the past month, QRVO has gained 13.46%, accelerating from its 3-month gain of 30.38% and 6-month gain of 45.07%, showing robust short-term momentum. The 1-month relative strength versus SPY is +12.87%, highlighting significant outperformance. However, the stock's beta of 1.455 indicates it is 45.5% more volatile than the market, which amplifies both upside and downside moves. The recent price action, with a 1-month change of +13.46% and a 3-month change of +30.38%, suggests momentum is accelerating, but the high beta warrants caution for position sizing. Key technical levels: support is likely around the 52-week low of $74.92, while resistance is at the 52-week high of $121.09. A breakout above $121.09 could signal further upside, while a breakdown below $74.92 would indicate a bearish reversal. The stock's max drawdown of -23.76% over the past year shows it can experience significant pullbacks, and the current price near the upper end of its range may face profit-taking pressure.
Beta
1.42
1.42x market volatility
Max Drawdown
-23.8%
Largest decline past year
52-Week Range
$75-$121
Price range past year
Annual Return
+24.7%
Cumulative gain past year
| Period | QRVO Return | S&P 500 |
|---|---|---|
| 1m | +13.5% | +0.6% |
| 3m | +30.4% | +3.6% |
| 6m | +45.1% | +14.6% |
| 1y | +24.7% | +15.8% |
| ytd | +32.3% | +13.6% |
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QRVO Fundamental Analysis
Qorvo's revenue trajectory has been mixed, with the most recent quarter (Q1 2027, ending June 27, 2026) showing revenue of $784.8 million, a decline of 4.15% year-over-year. This follows a Q4 2026 revenue of $808.3 million and Q3 2026 revenue of $993.0 million, indicating a sequential decline and a slowdown from the prior year's levels. The revenue segments show ACG (Advanced Cellular Group) contributing $476.6 million, HPA (High Performance Analog) $206.4 million, and CSG (Connectivity and Sensors Group) $101.9 million, with ACG being the largest driver. The overall revenue trend suggests softening demand, particularly in the smartphone market, which is a key end market for Qorvo. On profitability, the company reported net income of $85.8 million in Q1 2027, with a net margin of 10.93% and a gross margin of 51.09%. This is an improvement from the previous quarter's net income of $29.7 million and gross margin of 48.87%, but still below the Q3 2026 net income of $164.1 million and gross margin of 46.75%. The gross margin has been volatile, ranging from 40.52% in Q1 2026 to 51.09% in Q1 2027, reflecting changes in product mix and pricing. The operating margin in Q1 2027 was 12.33%, up from 3.90% in Q4 2026, but the company's profitability remains sensitive to revenue fluctuations. The balance sheet shows a debt-to-equity ratio of 0.463, a current ratio of 3.24, and cash of $1.33 billion, indicating a healthy liquidity position. Free cash flow for the trailing twelve months was $649.5 million, with Q1 2027 free cash flow of $115.3 million, down from $255.0 million in Q4 2026. The company generated operating cash flow of $139.5 million in Q1 2027, and its ROE is 10.14%, which is moderate. The debt-to-equity ratio of 0.463 is manageable, and the interest coverage ratio of 6.10 (from historical ratios) suggests the company can service its debt, but the declining free cash flow trend warrants monitoring.
Quarterly Revenue
$784795000.0B
2026-06
Revenue YoY Growth
-4.2%
YoY Comparison
Gross Margin
51.1%
Latest Quarter
Free Cash Flow
$649508000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is QRVO Overvalued?
Given that Qorvo's net income is positive (TTM net income of $85.8 million in the latest quarter, and positive EPS of $0.047), the PE ratio is the appropriate primary metric. The trailing PE is 21.13, while the forward PE is 14.44, indicating that the market expects earnings growth. The gap between trailing and forward PE suggests analysts anticipate significant earnings improvement, likely driven by merger synergies or operational efficiencies. Compared to the semiconductor industry average PE of around 20-25x, Qorvo's trailing PE of 21.13 is roughly in line, but the forward PE of 14.44 represents a discount, suggesting the stock may be undervalued relative to its growth prospects. However, the PS ratio of 1.95 and EV/EBITDA of 10.26 are also relevant; the PS ratio is relatively low compared to peers, while EV/EBITDA is moderate. The PEG ratio of 0.04 is exceptionally low, but this may be distorted by the low earnings base. Historically, Qorvo's PE ratio has ranged from negative values to over 60x in recent quarters, with a median around 20-30x. The current trailing PE of 21.13 is near the lower end of its historical range, suggesting the stock is not expensive relative to its own history. However, the forward PE of 14.44 implies that the market is pricing in a significant earnings rebound, which may be optimistic given the revenue decline. The PB ratio of 2.14 is also below its historical average of around 2.5-3.0, indicating a potential value opportunity if the company can stabilize its business.
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
Qorvo faces financial and operational risks primarily from its declining revenue and dependence on the smartphone market. Revenue in Q1 2027 fell 4.15% year-over-year to $784.8 million, with the ACG segment accounting for $476.6 million, or 60.7% of total revenue, exposing the company to cyclical smartphone demand. Free cash flow declined to $115.3 million from $255.0 million in the prior quarter, and net income of $85.8 million, while positive, is volatile and below the $164.1 million reported in Q3 2026. The debt-to-equity ratio of 0.463 is manageable, but interest coverage of 6.10 times and $1.33 billion in cash provide some cushion; however, continued revenue declines could pressure margins and cash generation.
Market and competitive risks are significant, given Qorvo's high beta of 1.455, which amplifies market swings. The stock trades at a trailing PE of 21.13 and a forward PE of 14.44, but the forward multiple assumes an earnings rebound that may not materialize if smartphone demand remains weak. Competition from Skyworks and Broadcom is intense, and the pending merger with Skyworks introduces integration and regulatory risks. Recent news highlights debt exchange offers and consent solicitations, which are necessary but carry execution risk. Additionally, sector rotation away from semiconductors could compress multiples, especially if interest rates remain elevated.
The worst-case scenario involves the Skyworks merger failing or being delayed, coupled with a sharper-than-expected decline in smartphone demand. In this scenario, the stock could retest its 52-week low of $74.92, representing a 34.4% decline from the current price of $114.17. The analyst low target of $66.00 implies an even steeper 42.2% downside. A breakdown below the 52-week low could trigger further selling, given the high beta and momentum-driven rally. Investors could lose over a third of their investment in this adverse scenario.
FAQ
The key risks include: 1) Merger risk: the Skyworks acquisition may fail or face delays, causing a sharp sell-off; 2) Revenue concentration: 60.7% of revenue comes from the ACG segment, tied to smartphone cycles; 3) High volatility: beta of 1.455 amplifies market swings, with a max drawdown of -23.76%; 4) Margin pressure: gross margin has been volatile, ranging from 40.52% to 51.09% in recent quarters. These risks are ranked from highest to lowest severity.
The 12-month forecast has three scenarios: bull case (20% probability) targeting $105-$121, base case (50%) targeting $85-$95, and bear case (30%) targeting $66-$75. The base case is most likely, assuming the merger closes with moderate integration challenges and revenue declines stabilize. The key assumption is that the Skyworks acquisition completes without major hurdles, allowing Qorvo to leverage synergies and stabilize earnings.
QRVO appears overvalued relative to analyst targets and its own history. The trailing PE of 21.13 is near the lower end of its historical range, but the forward PE of 14.44 assumes an earnings rebound that may not materialize. The PS ratio of 1.95 and EV/EBITDA of 10.26 are moderate, but the stock trades at a premium to the analyst average target of $90.17. The market is pricing in successful merger synergies, which may be optimistic given revenue declines.
QRVO is not a clear buy at current levels. The stock trades at $114.17, near its 52-week high, while the analyst average target of $90.17 implies a 21.0% downside. The forward PE of 14.44 is attractive, but revenue declined 4.15% year-over-year in Q1 2027, and the pending merger adds uncertainty. For risk-tolerant investors, a small position could be justified if the merger closes and revenue stabilizes, but the risk-reward is skewed to the downside in the near term.
QRVO is more suitable for medium-term investment (1-2 years) rather than short-term trading or long-term holding. The high beta of 1.455 and event-driven merger make it volatile for short-term traders, while the lack of dividends and cyclical revenue make it less ideal for long-term income investors. A minimum holding period of 12-18 months is suggested to capture potential merger synergies and revenue recovery, but investors should monitor the merger progress closely.