Is Qorvo (QRVO) an Evolving Opportunity?

ClearBridge Investments, an investment management company, released its “ClearBridge Select Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equities strongly rebounded in the second quarter. The S&P 500 Index returned 10.9%, and the benchmark Russell 3000 Index advanced 11.0%, as risk-on sentiment took hold following the pause in tariff implementation. The strategy outperformed the benchmark in the quarter, driven by the strength in portfolio construction across companies and sectors with distinct growth drivers. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, ClearBridge Select Strategy highlighted stocks such as Qorvo, Inc. (NASDAQ:QRVO). Qorvo, Inc. (NASDAQ:QRVO) develops and commercializes technologies and products for wireless, wired, and power markets. The one-month return of Qorvo, Inc. (NASDAQ:QRVO) was -1.55%, and its shares lost 12.15% of their value over the last 52 weeks. On September 17, 2025, Qorvo, Inc. (NASDAQ:QRVO) stock closed at $87.67 per share, with a market capitalization of $8.12 billion.

ClearBridge Select Strategy stated the following regarding Qorvo, Inc. (NASDAQ:QRVO) in its second quarter 2025 investor letter:

"We exited Monolithic Power Systems in the IT sector, rolling the proceeds into newer semiconductor additions, Lattice Semiconductor and Qorvo, Inc. (NASDAQ:QRVO). Qorvo is a communications semiconductor company primarily selling into mobile phones, with heavy iPhone exposure, and defense devices. The stock, which we view as an evolving opportunity, has been depressed as sales of iPhones have been disappointing, and the current management team has made poor capital allocation decisions. We believe new shareholders who have obtained board seats will improve operation, capital allocation and pursue strategic activity to unlock value, while we wait for future iPhone upgrade cycles."

Qorvo, Inc. (NASDAQ:QRVO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 43 hedge fund portfolios held Qorvo, Inc. (NASDAQ:QRVO) at the end of the second quarter, compared to 45 in the previous quarter. Qorvo, Inc. (NASDAQ:QRVO) reported revenue of $819 million for its fiscal first quarter of 2026, with a non-GAAP gross margin of 44% and non-GAAP diluted earnings of $0.92 per share, all of which exceeded expectations. While we acknowledge the potential of Qorvo, Inc. (NASDAQ: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.

In another article, we covered Qorvo, Inc. (NASDAQ:QRVO) and shared the list of most undervalued semiconductor stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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