Qorvo’s Investor Day Review

At its Investor Day, Qorvo (NASDAQ:QRVO) unveiled a new target model aiming for over 10% long-term revenue growth CAGR. This growth is expected to be driven by mid-to-high-single-digit growth in the ACG segment with a 5% SAM growth, double-digit growth in the HPA segment with approximately 20% SAM growth, and strong double-digit growth in the CSG segment also with 20% SAM growth.

Qorvo anticipates achieving over 50% gross margins through lower capital intensity, improved factory efficiency, process advancements, economies of scale, and diversification. The company is targeting operating margins between 30-35%, aligning with previous peak cycle operating margins of around 33.4% in fiscal 2022. Historically, operating margins have been in the mid-to-high 20s during prior cycles. The margin expansion strategy includes increasing the non-handset business to over 50% of revenue over time.