Stock Analysis & Valuation Qorvo, Inc. (2QO.DE)

• Previous Close: €73.41
• Sector Valuation Confidence Level: Low

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method	11.70	-84
Graham Formula	3.50	-95

Strategic Investment Analysis

Company Overview

Qorvo, Inc. (2QO.DE) is a leading global semiconductor company specializing in advanced radio frequency (RF) solutions for wireless, wired, and power markets. Headquartered in Greensboro, North Carolina, Qorvo operates through two key segments: Mobile Products and Infrastructure & Defense Products. The company provides cutting-edge RF components, including power amplifiers, filters, switches, and ultra-wideband (UWB) solutions, catering to smartphones, wearables, IoT devices, automotive connectivity, and defense applications. Qorvo's expertise in compound semiconductors (GaN, SiC) positions it as a critical player in 5G infrastructure, renewable energy, and aerospace markets. With a strong focus on innovation, Qorvo serves OEMs and ODMs worldwide, leveraging its vertically integrated manufacturing capabilities. As a key enabler of next-gen connectivity, Qorvo is strategically positioned in the high-growth semiconductor sector, benefiting from trends like 5G expansion, IoT proliferation, and defense modernization.

Investment Summary

Qorvo presents a mixed investment profile. On the positive side, the company holds a strong position in RF semiconductors, a market with robust growth driven by 5G, IoT, and defense spending. Its diversified product portfolio and technological leadership in GaN/SiC provide competitive advantages. However, investors should note the FY2024 net loss of €70.3 million and negative EPS, reflecting cyclical demand weakness in smartphones and inventory corrections. The high beta (1.44) indicates volatility relative to the market. While operating cash flow remains healthy (€833M), significant debt (€1.99B) warrants monitoring. The lack of dividends may deter income-focused investors. Long-term prospects appear favorable given Qorvo's exposure to secular growth markets, but near-term performance depends on mobile market recovery and defense contract execution.

Competitive Analysis

Qorvo competes in the highly competitive RF semiconductor space, where its key advantages include: 1) Strong IP portfolio in BAW filters and GaN technology, critical for 5G infrastructure, 2) Vertical integration with in-house manufacturing, ensuring quality control, 3) Strategic relationships with major smartphone OEMs and defense contractors. However, the company faces intense competition from larger rivals like Qualcomm (integrated modem-RF solutions) and smaller, agile competitors in niche segments. Qorvo's Mobile Products segment (58% of revenue) is particularly exposed to smartphone cyclicality, while its Infrastructure & Defense segment benefits from more stable, long-term contracts. The company's UWB solutions (e.g., in Apple AirTags) provide differentiation in IoT markets. Compared to pure-play RF competitors, Qorvo's diversified end-market exposure provides some resilience, but gross margins (currently ~40%) lag behind best-in-class peers due to product mix and manufacturing costs. Its defense business (15-20% of sales) offers higher margins but depends on government budgets. Technological leadership in GaN for 5G base stations and SiC for automotive/energy applications positions Qorvo well for future growth vectors.

Major Competitors

• Qualcomm Inc. (QCOM): Qualcomm dominates integrated mobile solutions with its Snapdragon platforms combining modems and RF front-end. Its scale and R&D budget (€6.3B annually) dwarf Qorvo's, but Qualcomm lacks Qorvo's strong filter technology. Qualcomm's vertical integration poses a threat to Qorvo's discrete component business, especially in premium smartphones.
• Skyworks Solutions (SWKS): Skyworks is a pure-play RF specialist with similar end-market exposure to Qorvo. It has stronger margins (50%+ gross margin) but less defense/industrial diversification. Skyworks lags in BAW filter technology, making it more reliant on Qorvo for advanced filtering solutions in 5G devices.
• Broadcom Inc. (AVGO): Broadcom's RF division (from former Avago) competes in filters and FBAR technology. Its massive scale and cash flow allow aggressive R&D and M&A. Broadcom focuses more on infrastructure than mobile, with strong positions in enterprise networking where Qorvo is less prominent.
• STMicroelectronics (STM.PA): STMicro offers competing RF and power semiconductors, with particular strength in automotive markets. Its SiC technology competes directly with Qorvo's, but STM has larger manufacturing scale. STM lacks Qorvo's depth in defense/aerospace and BAW filters.
• Intel Corporation (INTC): Intel is emerging as an RF competitor through its foundry services and 5G infrastructure push. While not yet a major threat to Qorvo's core business, Intel's vertical integration capabilities and recent investments in GaN technology could disrupt longer-term, especially in base station markets.