Qorvo (QRVO): Our #1 Overlooked AI Stock

AI hardware gets most of its attention from the “big three”: Nvidia (NASDAQ: NVDA), AMD (NASDAQ: AMD), and Broadcom (NASDAQ: AVGO).

But our Zen Ratings system scores most of these as fairly valued or slightly overvalued.

Plus, there’s a part of the semiconductor stack that almost nobody talks about … even though AI compute can’t function without it. And the valuations are much more favorable.

These are RF chips.

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And one of the leaders in this space is still priced like a slow-growth, cyclical handset supplier … even as demand from AI data centers quietly accelerates. And it quietly climbed the leaderboard to become our top rated stock in the semiconductor industry.

And that stock is? Qorvo (NASDAQ: QRVO). 

First: What is RF, in plain English?

RF = radio frequency chips.

They do three things:

1. Send signals
2. Receive signals
3. Clean up and route those signals so devices don’t interfere with each other

RF chips are inside…

• Smartphones
• Wi-Fi routers
• Cars
• Smart home devices
• And now? They’re in AI data centers and high-speed networking gear

RF is basically the “connectivity plumbing” of the tech world.

If compute is the brain (Nvidia), then RF is the nervous system that moves signals around.

A Historically Cyclical Market | Priced That Way Today

RF chips have always been seen as a boom-bust, low-margin cycle tied mostly to smartphone upgrades.

Because of that, the market still values Qorvo at a 15 forward P/E (cheap for semis).

It also scores an A for its Value Component Grade, which weighs cash flow yield, free cash flow to price, price-to-earnings growth (PEG) ratio, and more. And it’s not a value trap, because it’s also scoring a B in Growth. 

See our other top value stocks to buy here.

See how QRVO scores on all component grades.

The AI Era Changes RF From “Cyclical” to “Structural”

AI data centers need massive amounts of high-frequency RF and power chips, far more than traditional cloud servers.

Why?

Because:

• AI servers move more data, at higher speeds, across more lanes
• These signals cause more interference, requiring more advanced RF filters
• Data centers require enormous amounts of power-management RF
• Networking gear (400G/800G) depends heavily on RF signal conditioning

In short: the more AI grows, the more RF silicon you need.

Qorvo’s Hidden Leverage to AI

Qorvo supplies chips used in:

• High-performance networking equipment
• Base stations
• Fiber and Wi-Fi infrastructure
• RF power amplifiers for data-heavy routing
• Signal integrity components for AI interconnects

This means AI adds a second demand cycle for RF:

• Smartphones (recovering)
• AI data centers (accelerating)

The market is still pricing only the first one.

The Value Play in the Semiconductor Sector

While Nvidia trades at 30–40× earnings, and many AI names are even richer, Qorvo trades like a sleepy handset supplier with little growth in a cyclical market. 

But the data center mix shift makes that valuation outdated. If RF demand keeps climbing with AI infrastructure, Qorvo’s earnings could look very different in 2025–2027.

If you think the AI bull market lasts multiple years, the current forward PE of 15 is likely very cheap for such an essential part of the infrastructure stack.

Why I’m Watching This Name

Qorvo isn’t a hype story. Instead, it has something more durable:

A cheap valuation in a part of the semiconductor stack that AI suddenly made important again.

RF went from “old tech” to “critical infrastructure” almost overnight … and most haven’t woken up yet.

If you’re looking for a formerly cyclical business benefiting from a secular AI demand wave this may be the cleanest example to add to a watchlist.

Add QRVO to your watchlist.

What to Do Next?

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