This Tech Stock May Plunge Sooner Than Later Following Its Impressive Rally
Share prices of Qorvo (NASDAQ: QRVO) have gained 20% since the beginning of July thanks to a rally in semiconductor stocks. But the company's fiscal 2023 first-quarter results (for the three months ended July 2, 2022), which were released on Aug. 3, suggest that its rally could soon fizzle out.
That's because Qorvo's top and bottom lines shrunk last quarter thanks to the weakness in the smartphone market. The company's outlook was another red flag as it indicates that the bad times are here to stay.
What's surprising is that Qorvo, which counts Apple (NASDAQ: AAPL) as its largest customer, is struggling, unlike other component suppliers such as Skyworks Solutions (NASDAQ: SWKS) and Cirrus Logic. Both Skyworks and Cirrus recently released solid results even though smartphone shipments were down last quarter, driven by a mix of content gains in premium smartphones and their relationship with Apple.
Source Fool.com
