Qorvo shares soared nearly 10% in premarket trading on Tuesday after the smartphone chipmaker announced plans to merge with Apple supplier Skyworks Solutions in a cash-and-stock deal valued at around $22 billion.

The move sent fresh waves through the semiconductor sector, which has already been benefiting from renewed optimism across global markets.

Under the agreement, Qorvo shareholders will receive $32.50 in cash and 0.96 shares of Skyworks for each Qorvo share held. If early gains hold, Qorvo could open at roughly $101 – its highest price level in nearly a year. By contrast, Skyworks shares slipped about 0.8% to $75.25 in premarket trading.

Skyworks and Qorvo to Merge, Create $22 Billion Semiconductor Enterprise https://t.co/0Bivvd7Iz2

— Barron's (@barronsonline) October 28, 2025

The merger aims to create a stronger player in the radio frequency (RF) and connectivity solutions segment, where both companies are key suppliers to Apple and other smartphone manufacturers. The combined entity would boast an expanded product portfolio and increased scale, positioning it to compete more effectively with major chipmakers amid the global race for advanced semiconductor technologies.

Earnings Beat Reinforces Positive Sentiment

The merger news comes on the heels of a solid earnings report from Qorvo for its fiscal second quarter of 2026. The company reported revenue of $1.1 billion, comfortably ahead of Wall Street estimates of $1.02 billion. Non-GAAP earnings per share reached $2.22, exceeding its previous guidance and highlighting operational resilience in a challenging demand environment.

Qorvo also achieved an adjusted gross margin of 49.7%, supported by disciplined cost management and a gradual rebound in mobile demand. However, management stopped short of providing formal guidance, citing the need for regulatory clarity surrounding the merger and broader macroeconomic factors.

Analyst Outlook and Valuation Metrics

Analyst sentiment toward Qorvo remains mixed, with six of 27 firms rating the stock as a “buy,” 17 as a “hold,” and four as a “sell.” According to LSEG data, the median 12-month price target stands at $95 per share, slightly above Monday’s close at $92.13.

The stock’s valuation currently sits at about 14 times projected 12-month earnings, down from 15 times three months ago, suggesting moderate upside potential relative to its semiconductor peers. The broader peer group, by comparison, carries an average “buy” recommendation, reflecting the sector’s strong fundamentals and rising investor interest.

Technical and Market Context

Technically, Qorvo’s stock shows growing strength after rebounding from early-2025 lows. Momentum indicators such as the MACD have turned positive, while the RSI near 53 suggests room for further upside without signaling overbought conditions. The next key resistance area lies around $104, with sustained movement above this level potentially triggering a breakout continuation.

Beyond company-specific drivers, broader market sentiment is also providing tailwinds. The S&P 500 closed at a new all-time high on Monday, fueled by optimism ahead of Wednesday’s Federal Open Market Committee (FOMC) decision. Investors are betting that the Federal Reserve will maintain a cautious tone on rates while signaling confidence in economic growth, which could support risk assets into year-end.

Adding to the upbeat tone, markets are also looking ahead to Thursday’s highly anticipated meeting between U.S. President Donald Trump and China’s President Xi Jinping. Expectations of renewed trade cooperation and potential technology-sector collaboration have contributed to a positive global outlook, lifting sentiment in semiconductor and tech-related stocks.

Outlook: Momentum Builds Ahead of Key Catalysts

With strong quarterly results, an ambitious merger plan, and favorable market momentum, Qorvo enters the final months of 2025 in a position of renewed strength. The integration with Skyworks could create a new heavyweight in wireless connectivity and smartphone chip design, enhancing competitiveness in one of tech’s most dynamic sectors.

If global optimism continues and the FOMC delivers a market-friendly message, Qorvo’s rally could extend further – setting the stage for a potential breakout in the semiconductor space as 2026 approaches.