Semiconductor Supplier Qorvo’s Stock Plummets After Warning of Flat Sales to Apple
A Warning Sign for Tech Investors
Qorvo, a leading semiconductor supplier, sent shockwaves through the tech industry after warning of potentially flat sales to its largest customer, widely believed to be Apple. Despite reporting better-than-expected fiscal third-quarter earnings, Qorvo’s stock took a nosedive in extended trading, leaving investors reeling.
Better-Than-Expected Earnings, But a Warning Looms
Qorvo’s initial stock surge was short-lived, as CEO Bob Bruggeworth revealed that sales to its top customer would show little to no growth in the fiscal year ending March 2026. This stark warning sent the stock tumbling 3.4% after the earnings call.
The Apple Factor
While Qorvo doesn’t explicitly name its largest customer, it’s no secret that Apple accounted for a staggering 46% of revenue in fiscal 2024. In the December quarter, this customer represented over half of Qorvo’s revenue. The implications of flat sales to Apple are significant, as analysts expect total revenue for fiscal 2026 to grow by just over 4% from the previous year.
Challenges Ahead for Android Business
Qorvo faces additional challenges in its Android business, with revenue expected to fall by $150 million to $200 million in fiscal 2026 and by a similar amount the following year. Most of this decline is attributed to the Chinese market.
Activist Investor Takes Notice
Earlier this month, activist investor Starboard Value revealed a 7.7% stake in Qorvo, adding pressure on the company to address its growth concerns.
What’s Next for Qorvo?
As Qorvo navigates these challenges, investors will be closely watching the company’s next moves. Will Qorvo be able to diversify its revenue streams and reduce its reliance on Apple? Only time will tell.
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