Shares in Qorvo (NASDAQ:QRVO) rose higher following the market open on Wednesday following the semiconductor device company's first analyst day event, where it laid out new financial metrics and strategy updates.
Most notably, Qorvo updated its long-term target model, aiming for revenue growth over 10%, a gross margin above 50%, and operating margins between 30-35%.
They also outlined a goal for Customer Solutions Group (CSG) and High Performance Analog (HPA) to contribute more than 50% of total revenue.
“We expect industry multi-year tailwinds and the company's “land and expand” strategy underpins its target >10% revenue CAGR,” Needham analysts commented.
“Nearer term, agreements in place with the company's lead Advanced Cellular Group (ACG) customer should stabilize the model, while more strategic efforts (in HPA and CSG) will drive gross margin back to 50% longer term.”
QRVO shares rose 4%.
Meanwhile, Oppenheimer analysts said they take a “wait and see approach” to Qorvo's growth from AI in the mature segment.
Despite commendable broad market focus, they highlight the company's 70% exposure to a declining handset market, which is why the firm prefers to stay on the sidelines.