Qorvo, Inc. (QRVO): A Bull Case Theory

We came across a bullish thesis on Qorvo, Inc. on Danny’s Substack by Danny Green. In this article, we will summarize the bulls’ thesis on QRVO. Qorvo, Inc.'s share was trading at $84.29 as of February 17th. QRVO’s trailing and forward P/E were 23.26 and 12.64 respectively according to Yahoo Finance.

Qorvo, Inc. engages in development and commercialization of technologies and products for wireless, wired, and power markets in the United States and internationally. QRVO stands at a pivotal juncture, benefiting from secular growth in smartphones, 5G/5G-Advanced rollouts, Wi-Fi 7 adoption, and rising defense and automotive RF spend. These trends support strong demand for Qorvo’s RF front-end components, filters, and infrastructure modules, which are indispensable across mobile, industrial, and auto markets.

Revenue momentum is evident, with recent quarterly results of ~$1.06B surpassing expectations, modest YoY growth, and sequential margin expansion driven by operational leverage and favorable product mix. Non-GAAP gross margins are trending toward the high-40% range, reflecting durable profitability, though performance remains sensitive to key customer order cadence, component costs, and macro-driven capex cycles.

The proposed merger with Skyworks, valued at approximately $22B, represents a significant near-term catalyst, alongside activist pressure from Starboard, which has increased the likelihood of strategic action. Management’s strong balance sheet, with ~$1.10B in cash, provides flexibility for M&A, buybacks, or other capital allocation initiatives. Qorvo’s moat stems from its RF IP, scale, and deep customer relationships, though vertical integration by OEMs or competitive technological shifts could erode this advantage over time.

Risks are tangible: major OEM order reductions, failed regulatory approval for the Skyworks merger, or superior competitor offerings could materially affect revenue and multiple. Conversely, successful merger completion, continued quarterly beats, and infrastructure or automotive design wins could unlock substantial upside.

Valuation is contingent on merger outcomes and secular growth assumptions, with scenario analysis required to balance cyclical smartphone exposure against long-term RF TAM capture. Strategically, investors should monitor merger updates, quarterly performance, customer order flows, capital allocation, and board/governance developments to calibrate exposure relative to catalyst risk and portfolio objectives. Overall, Qorvo presents a complex but potentially rewarding investment, combining secular tailwinds, operational momentum, and event-driven upside with clearly defined risks.

Previously, we covered a bullish thesis on Broadcom Inc. (AVGO) by Daan Rijnberk in March 2025, which highlighted AI-driven revenue growth, hyperscaler customer dependence, record EBITDA, and strong VMware integration. AVGO’s stock price has appreciated by approximately 70.06% since our coverage. Danny Green shares a similar view but focuses on Qorvo, Inc.’s (QRVO) secular RF growth and event-driven upside from the Skyworks merger.

Qorvo, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held QRVO at the end of the third quarter which was 43 in the previous quarter. While we acknowledge the risk and potential of QRVO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than QRVO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.