Qorvo

What does it do?

Qorvo makes the tiny chips inside your smartphone that handle wireless signals — think of them as the traffic controllers that make sure your calls, Wi-Fi, and Bluetooth all work without crashing into each other. When you switch from 4G to 5G on your phone, there's a good chance a Qorvo chip is making that happen. Beyond phones, they also make components for the US military, smart home devices, and electric vehicle systems. If a device needs to send or receive a wireless signal, Qorvo probably has a chip for it.

How does it make money?

Qorvo makes money by selling semiconductor components to phone makers, defense contractors, and consumer electronics companies. Their biggest revenue driver is the Advanced Cellular Group, which sells 5G chips to smartphone manufacturers — Apple is believed to be a major customer, making up a significant chunk of sales. Their High Performance Analog segment sells to defense and aerospace clients, and their Connectivity and Sensors Group covers Wi-Fi, smart home, and EV-related chips. Total revenue held steady at around $3.7 billion year-over-year, and net income came in at $0.3 billion.

Why do investors care?

The core growth story is 5G — as billions of people around the world upgrade to 5G phones over the next several years, Qorvo should sell more chips per device. Defense spending is a second tailwind, as governments increase budgets for advanced communications and electronic warfare systems where Qorvo has deep expertise. The company has also been investing in emerging areas like Wi-Fi 7, EV power management, and smart home sensors, which could become meaningful revenue streams. For the thesis to work, smartphone demand needs to recover, Qorvo needs to keep or grow its slot in major phone designs, and defense contracts need to keep flowing.