Seeking Alpha: Qorvo Still Tied To Apple's Fortunes, And Now Intel's As Well?

Qorvo (NASDAQ:QRVO) isn't quite a pure-play on high-performance RF chips in handsets, as the company's Infrastructure and Defense Products (or IDP) kicks in about 20% of the company's revenue, but it is close. That didn't work in the company's favor in 2015, as a slowing Chinese smartphone market and issues with top customer Apple (NASDAQ:AAPL) (more than 40% of revenue) led to multiple reductions in guidance and a substantial reduction in the share price - the stock is down close to 40% over the past year and down a similar amount since my last article on the company. Even allowing that many chip companies that depend upon the smartphone space have had their struggles (including Skyworks (NASDAQ:SWKS), Qualcomm (NASDAQ:QCOM), and Cirrus (NASDAQ:CRUS)), Qorvo has stood out as a weak performer.

Valuation seems tricky here. On the positive side, it looks as though the company has a meaningful opportunity to benefit from Intel's (NASDAQ:INTC) participation in the Apple iPhone 7, as Qorvo could generate meaningfully higher content in those phones, mid single-digit revenue growth after FY2016 would seem to support a fair value above $60, and the company has good share in segments like PA modules and switches. On the other hand, Skyworks and Broadcom (NASDAQ:AVGO) are tough rivals, the company needs to do better outside of Apple, and the Intel-related benefits are hardly certain.

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Qorvo Still Tied To Apple's Fortunes, And Now Intel's As Well?