Craig-Hallum Lifts Price Objective on Qorvo (QRVO) Stock

Qorvo, Inc. (NASDAQ:QRVO) is one of the Most Undervalued Semiconductor Stocks to Buy According to Analysts. On July 30, Craig-Hallum analyst Anthony Stoss lifted the company’s price objective to $110 from $85, while keeping a “Buy” rating, as reported by The Fly. The firm highlighted that Qorvo, Inc. (NASDAQ:QRVO) posted June revenues and EPS above the Street estimates. Furthermore, it gave guidance better than consensus for September, considering the seasonality and increased content with Apple. The management noted that the strength remains in Defense and Aerospace, while their Infrastructure business continues to recover, added the firm.

Qorvo, Inc. (NASDAQ:QRVO) has been undertaking a broad set of initiatives to structurally improve profitability, and it is witnessing the positive effects of the strategic actions. In the September quarter, Qorvo, Inc. (NASDAQ:QRVO) projects that sequential growth and margin expansion will be aided by increases in Qorvo content and unit volumes in large customer programs. For the September quarter, the company expects quarterly revenue of ~$1.025 billion (plus or minus $50 million) and a non-GAAP gross margin of 48% – 50%.

Investment management company Vulcan Value Partners recently released its Q4 2024 investor letter. Here is what the fund said:

“There were no material contributors to performance. There were three material detractors: Sdiptech AB, Qorvo Inc., and Elevance Health Inc. Qorvo, Inc. (NASDAQ:QRVO) is a leader in radio frequency (RF) systems and power management solutions primarily for mobile phones, wireless infrastructure, aerospace/defense, internet of things, and various other applications. Qorvo lowered near-term guidance largely due to accelerated weakness within its Chinese Android business as customers shifted from mid-tier phones, a market in which Qorvo participates, to entry level phones, a market where Qorvo does not participate. Qorvo continues to execute well in its other mobile markets including Apple and Android’s premium and flagship tiers. Importantly, management’s long-term revenue and margin targets, and confidence in achieving those targets, remain unchanged. We added to our position during the quarter.”

While we acknowledge the potential of QRVO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None. This article is originally published at Insider Monkey.