Key insights
- Mizuho downgraded Qorvo (QRVO) to Underperform, citing concerns about declining global handset volumes and rising RF insourcing by Chinese manufacturers. They project significant declines in handset shipments for major players like Apple and Samsung in 2026, further impacting Qorvo's revenue, which is heavily reliant on the handset market. While Qorvo's recent earnings beat expectations, the downgrade reflects concerns about future growth prospects and increasing competition.
Investing.com - Mizuho downgraded Qorvo Inc (NASDAQ:QRVO) to Underperform from Neutral and lowered its price target to $66 from $70, citing supply chain checks and handset industry pressures. The stock currently trades at $81.90 with a market cap of $7.59 billion. According to InvestingPro data, 16 analysts have revised their earnings downwards for the upcoming period, though the platform’s Fair Value analysis suggests the stock remains undervalued at current levels—making it one to watch on the Most Undervalued stocks list.
The firm estimates global handset volumes will decline more than 10% year-over-year in 2026 and potentially another 5% in 2027. Persistent memory shortages are expected to compress unit volumes and inflate average selling prices, particularly affecting low- and mid-tier devices.
Handsets represent approximately 60% to 70% of revenue for Qorvo. Mizuho projects China OEM shipments could fall 10% to 20% year-over-year in 2026, with VOX, Honor, and Xiaomi most exposed to the downturn.
The firm estimates iPhone units will decline roughly 5% year-over-year in 2026 and Samsung shipments will fall 5% to 10%, despite strong March quarter iPhone trends. DRAM and NAND pricing increases of 70% to 100% may weigh on second-half 2026 shipments.
Mizuho noted rising RF insourcing by Chinese manufacturers to domestic suppliers including SMEI, Runxin, and CETC adds competitive headwinds for Qorvo.
In other recent news, Qorvo Inc. reported its third-quarter fiscal 2026 earnings, exceeding analysts’ expectations with an earnings per share of $2.17 compared to the forecasted $1.86. The company’s revenue for the quarter was $993 million, slightly higher than the anticipated $988.69 million. Despite these positive earnings results, Wolfe Research downgraded Qorvo’s stock rating to Peerperform from Outperform due to the ongoing acquisition by Skyworks Solutions. This downgrade was attributed to challenges in achieving content gains in RF and the consolidation of the handset market around a single customer. Furthermore, Qorvo and Skyworks have received a "Second Request" from the U.S. Federal Trade Commission for additional information regarding their proposed merger, extending the review period under the Hart-Scott-Rodino Antitrust Improvements Act. Meanwhile, Wolfe Research remains bullish on Advanced Micro Devices, citing strong server GPU demand and the impact of Meta AI deployments. The firm adjusted its revenue estimates for AMD, projecting $74 billion in revenue and earnings per share of $12.63 for the calendar year 2027. These developments highlight significant shifts in the semiconductor industry landscape.
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