September looms as a risk month for stocks, Yardeni says
On Friday, Raymond (NSE:RYMD) James provided insights into the semiconductor sector, noting a decline in smartphone shipments. According to the firm’s analysis, April saw a 1.6% year-over-year decrease in smartphone shipments. This downturn contrasts with the performance of foreign brands, which experienced a significant rebound, outperforming the seasonal average by a noteworthy margin. For investors seeking deeper insights into semiconductor stocks, InvestingPro offers comprehensive analysis of over 1,400 US-listed companies, including detailed financial health scores and Fair Value estimates.
The firm highlighted that while Apple Inc. (NASDAQ:AAPL), which holds an ’Outperform’ rating, saw its iPhone shipments dip, the impact of recent price discounts in China remains uncertain. These discounts began in May, and Raymond James suggests waiting for additional data from the next month to draw more concrete conclusions about Apple’s business in China for the quarter ending in June 2025.
Looking ahead, the report mentioned Apple’s potential collaboration with Alibaba (NYSE:BABA) and Baidu (NASDAQ:BIDU) to introduce Apple Intelligence in China during the summer. This move could serve as a catalyst, especially considering that iPhone sales have shown better year-over-year performance in markets where Apple Intelligence was available.
For the U.S. market, Raymond James anticipates that tariffs could lead to increased iPhone prices, potentially dampening demand, although a temporary 90-day reduction in tariffs between the U.S. and China has been agreed upon.
The analysis also touched on other companies with significant exposure to Apple’s supply chain. Qualcomm Incorporated (NASDAQ:QCOM), which is rated ’Market Perform,’ reported robust growth in premium Android smartphones in China for the March 2025 quarter and expects handset revenue to grow by 10% year-over-year in the June 2025 quarter. This forecast implies a sequential decrease of approximately 5%. Other suppliers like Qorvo, Inc. (NASDAQ:QRVO), Skyworks Solutions, Inc. (NASDAQ:SWKS), and Broadcom Inc. (NASDAQ:AVGO), also holding ’Market Perform’ ratings and with considerable sales attributed to Apple, face limited exposure to China’s Android market. According to InvestingPro, Qorvo, with a market cap of $7.01B, maintains strong financial health with a current ratio of 2.77 and appears undervalued based on Fair Value analysis. The company boasts a perfect Piotroski Score of 9, indicating robust financial strength, while analysts have recently revised earnings estimates upward for the upcoming period.
In other recent news, Qorvo, Inc. reported its fiscal fourth quarter 2025 results, achieving revenues of $869.5 million and adjusted earnings per share of $1.42, surpassing consensus estimates. The company has also provided guidance for the upcoming June quarter, with projected revenue and adjusted EPS midpoints of $775.0 million and $0.68, respectively. Additionally, Qorvo announced the approval of performance-based restricted stock units for its executive officers under the 2022 Stock Incentive Plan, designed to incentivize the achievement of specific company objectives. In governance updates, Qorvo amended its corporate bylaws, allowing shareholders with at least 25% ownership to call special meetings, marking a shift in shareholder influence. Analyst firms have provided mixed outlooks; KeyBanc Capital Markets maintains a Sector Weight rating with an $80 target, citing potential share gains with Apple. Meanwhile, Stifel and Loop Capital both hold a rating on the stock, with price targets of $75, noting Qorvo’s collaboration with Apple and improved cost structure. The company faces challenges in the Android market but anticipates growth in its Aerospace/Defense segment and increased content in upcoming iPhone models.
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