Qorvo In A Tricky Spot Between Opportunity And Execution

One of the most frustrating investment situations to be in is when a company has exciting potential and large market opportunities but just can't marry that to sustained execution. It's been a while since I've written publicly on Qorvo (QRVO), but inconsistent execution was an issue in late 2016 and it remains an issue today, even though there are a lot of legitimate positive points to this story.

Winning business from Apple (AAPL) that was previously Broadcom's (AVGO) domain was a coup, and I like the company's strong position in GaN semiconductors as well as the growth opportunities in the IDP business. I don't like the disappointing, inconsistent, "it's always something" track record with gross margins, and it's a significant impediment to Qorvo realizing its full potential. Even so, I'm intrigued by the potential value here and I think the stock price may be underpinned by a sense of "if they won't fix it… somebody else will" M&A leverage.

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Qorvo In A Tricky Spot Between Opportunity And Execution