Markets
markets
Yiwen Lu

Chipmaker Qorvo tumbles as Android-makers turn to cheaper chips

Shares of Qorvo were down more than 23% in early trading Wednesday, after the chipmaker warned of an industry-wide shift from its more advanced chips to lower-tier alternatives in its latest earnings.

Qorvo makes tiny computer chips for wireless devices like smartphones, iPads, and Apple Watches, in particular to support 5G deployment. Customers in the Android 5G market, however, have recently shifted to using lower-tier chips, a market that Qorvo does not participate in. That could result in Qorvo losing between 20% to 30% of a $1 billion market, the company said.

“While the flagship and premium tiers are holding up well, the mix in the mid- and entry tiers has shifted towards entry-tier 5G at the expense of mid-tier 5G,” Qorvo CEO Robert Bruggeworth said during an earnings call. The trend, which is not expected to reverse, will negatively impact Qorvo’s 2025 revenue and margins. 

The company forecasted adjusted earnings for the next quarter to be between $1.10 and $1.30, while analysts projected $1.39. 

Despite this bleak market output, Qorvo was able to beat Wall Street expectations in its latest quarter. The company reported earnings per share of $1.88 on $1.05 billion sales, above analysts’ estimates for EPS of $1.85 on sales of $1.03 billion.

More Markets

See all Markets
markets
Matt Phillips

Intuit, Workday jump amid Iran war fueling flight-to-software trade

Cash flow-positive software companies — the same ones that were seen as doomed to obsolescence by AI a few weeks back — jumped Thursday, with Oracle, Workday, Intuit, and Salesforce staying above water despite the general downtrend in the big indexes.

Some of the uptick is likely linked to the better-than-expected weekly jobless claims numbers that came in early today, which eased concerns about a recession brought on by the most recent monthly employment report. (Payroll-processing stocks like Paycom Software, Paychex, and Automatic Data Processing are clearly breathing a sign of relief.)

And given that these software companies often have a “seat-based” revenue model, the fact that human butts are not rapidly being replaced by AI-enhanced robot keisters gives them a lift as well.

Also as we’ve said before, amid the chaos and uncertainty of the Iran war, the steady cash flows and predictable short-term outlook of software-as-a-service stocks have a definite appeal.

Even if you think that over the long term AI will end up slaughtering these cash cows, that’s a problem for a day perhaps three to five years in the future, whereas the Iran war is a growing risk investors increasingly can’t ignore today.

markets
Matt Phillips

Rocket Lab slips with other momentum stocks despite DOD hypersonic test deal, new analyst “buy” call

Rocket Lab slipped early Thursday along with other momentum stocks, despite announcing a new $190 million deal for 20 tests of hypersonic rockets for the Department of Defense and picking up a new bullish analyst call.

The commercial space launch company called the deal to launch 20 hypersonic test flights over a four-year period in collaboration with Kratos Defense its “single largest launch agreement yet.”

Separately, analysts at brokerage firm Clear Street initiated coverage of Rocket Lab with a “buy” rating and an $88 price target — essentially the same as Wall Street’s $88.38 consensus, according to FactSet. That implies upside of about 27% for the stock compared to yesterday’s close. Clear Street analysts wrote:

“Despite shares rising 289% (vs. 26% for the NASDAQ) over the past year, we see further upside. Our $88 target is based on 20x 2030E EV/Sales, in line with the ~30x NTM EV/Revenue average over the past year when discounted to present value. We anchor on 2030E to capture the payoff from ~16 annual Neutron launches following a multi-year investment cycle. Our outlook incorporates estimated dilution and proceeds from the $1B equity distribution agreement announced on 3/17/2026.”

The favorable headlines for Rocket Lab weren’t enough to help the shares overcome a general downdraft for high-beta momentum stocks such as itself. They are getting hammered early on the deteriorating situation in the Mideast war.

Rocket Lab wins $190 million Pentagon deal for hypersonic test flights

Rocket Lab wins $190 million Pentagon deal for hypersonic test flights

Separately, analysts at brokerage firm Clear Street initiated coverage of Rocket Lab with a “buy” rating and an $88 price target — essentially the same as Wall Street’s $88.38 consensus, according to FactSet. That implies upside of about 27% for the stock compared to yesterday’s close. Clear Street analysts wrote:

“Despite shares rising 289% (vs. 26% for the NASDAQ) over the past year, we see further upside. Our $88 target is based on 20x 2030E EV/Sales, in line with the ~30x NTM EV/Revenue average over the past year when discounted to present value. We anchor on 2030E to capture the payoff from ~16 annual Neutron launches following a multi-year investment cycle. Our outlook incorporates estimated dilution and proceeds from the $1B equity distribution agreement announced on 3/17/2026.”

The favorable headlines for Rocket Lab weren’t enough to help the shares overcome a general downdraft for high-beta momentum stocks such as itself. They are getting hammered early on the deteriorating situation in the Mideast war.

markets
Max Knoblauch

Uber will invest $1.25 billion in Rivian in a new robotaxi deal

EV maker Rivian surged more than 9% in premarket trading on Thursday following an announcement that Uber will invest up to $1.25 billion in the company through 2031 as part of a robotaxi partnership.

The deal will begin with an initial $300 million investment, and Uber will purchase 10,000 autonomous versions of the R2. Uber will have the option to buy 40,000 more in 2030.

The R2 is Rivian’s smaller, less expensive model and is set to roll out to buyers in the second quarter of this year.

Per a company filing on Thursday, Rivian “no longer expects to be adjusted EBITDA positive in 2027 due to an expected increase in R&D spend associated with the acceleration of its autonomy roadmap.”

Uber, which has more than 20 autuonomous vehicle partnerships ranging from Alphabet’s Waymo to Baidu, has become a dominant robotaxi force.

Rivian had first hinted at robotaxi plans at its Autonomy and AI Day in December.

Uber to invest up to $1.25 billion in EV maker Rivian in deal to launch 50,000 robotaxis

Uber to invest up to $1.25 billion in EV maker Rivian in deal to launch 50,000 robotaxis

The R2 is Rivian’s smaller, less expensive model and is set to roll out to buyers in the second quarter of this year.

Per a company filing on Thursday, Rivian “no longer expects to be adjusted EBITDA positive in 2027 due to an expected increase in R&D spend associated with the acceleration of its autonomy roadmap.”

Uber, which has more than 20 autuonomous vehicle partnerships ranging from Alphabet’s Waymo to Baidu, has become a dominant robotaxi force.

Rivian had first hinted at robotaxi plans at its Autonomy and AI Day in December.

Hyunsoo Rim, David Crowther
3h
Oil and gas prices jump, stocks slide, after Middle East strikes hit key energy infrastructure

Attacks on Iranian and Qatari energy facilities pushed Brent to $118, as Defense Secretary Pete Hegseth offered no deadline on an end to the war in a press conference.

Flare stack air pollution
markets
J. Edward Moreno

Lilly reports encouraging trial results for its next-gen GLP-1 shot

Eli Lilly released late-stage trial results for its next-generation GLP-1 shot, retatrutide, showing the drug helped patients lose more weight than anything currently on the market.

Patients taking the highest dose of retatrutide, 12 milligrams, lost 16.8% of their body weight after 40 weeks, more than its current bestseller, tirzepatide. The results also showed significant reduction in blood sugar levels.

The stock was flat in premarket trading following the news.

Lilly’s tirzepatide, sold under the brand names Zepbound and Mounjaro, is currently the most sold drug in the world. The company’s sales have now outpaced its top rival, Novo Nordisk, which was the first to bring a GLP-1 to market but has seen sales decelerate as competitors have muscled in.

Still, some expect Lilly’s winning streak may not last forever. Analysts at HSBC gave the stock a rare downgrade earlier this week, citing a crowded market, among other factors.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, Robinhood Derivatives, LLC, or Robinhood Money, LLC. Futures and event contracts are offered through Robinhood Derivatives, LLC.
©2026 Sherwood Media, LLC