What Happened?

Shares of communications chips maker Qorvo (NASDAQ: QRVO) jumped 11.4% in the pre-market session after the company reported impressive first-quarter 2025 results, which blew past analysts' revenue, EPS, and adjusted operating income expectations. In addition, its full-year revenue guidance topped Wall Street's estimates. Revenue declined 7.6% compared to the same period last year. Still, performance was better than expected thanks to gains in its High-Performance Analog segment and stable demand from its largest customer in mobile. On the other hand, its inventory levels increased. Still, we think this was a good quarter with some key areas of upside.

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What The Market Is Telling Us

Qorvo’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. But moves this big are rare even for Qorvo and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 22 days ago when the stock dropped 8.2% on the news that markets gave up early gains with optimism over progress in US-China trade talks quickly fading as the Trump administration announced plans to raise tariffs on all Chinese imports to well above 100%. Hopes had been lifted by chatter of constructive negotiations aimed at easing and eventually removing U.S. trade tariffs. But the news confirmed fears of a prolonged trade fight, increasing uncertainty about the direction of economic policy. This left investors grappling with the dual threat of slower growth and higher inflation, both of which could linger if the standoff continues.

Qorvo is up 1% since the beginning of the year, but at $70.43 per share, it is still trading 45.5% below its 52-week high of $129.21 from July 2024. Investors who bought $1,000 worth of Qorvo’s shares 5 years ago would now be looking at an investment worth $718.45.

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