Qorvo Stock Bounces, But Charts Still Bearish - Starboard's Jeffrey Smith Sees A Comeback Play

Qorvo Inc. QRVO might have staged a quick rebound this past week, but don't let the 13.75% five-day pop fool you – this chip stock is still deep in the red, both on the charts and for the year.

Chart created using Benzinga Pro

Starboard Jumps In With A Bold Bet

QRVO stock is down a bruising 46.10% over the past 12 months and 14.96% year-to-date. Even the past month's performance isn't offering much relief, with QRVO stock down nearly 19%.

But, in a bold contrarian move, activist hedge fund manager Jeffrey Smith of Starboard Value just added Qorvo to his portfolio, making it a hefty 7.76% stake – worth $8.27 million.

So what's the play here?

Read Also: This Strategy Always Outperforms In Bear Markets

QRVO Stock Technicals Still Signal Trouble

Technically, the setup remains bearish. Qorvo stock is trading below its five-day, 20-day and 50-day exponential moving averages, signaling sustained downward momentum. The Moving Average Convergence Divergence (MACD) is sitting at a negative 4.48, reinforcing the bearish trend. Meanwhile, the Relative Strength Index (RSI) of 40.45 suggests the stock is stuck in "meh" territory—not oversold, not overbought, just drifting with mild buying pressure.

The one glimmer of hope? Qorvo stock, at $58.38, is trading above its eight-day simple moving average of $56.79, a bullish signal for short-term traders sniffing for momentum. But with the 20-day, 50-day and 200-day simple moving averages all looming above like resistance cliffs, the broader trend still points to caution.

For now, Qorvo's bounce looks more like a dead-cat rally than a full-blown turnaround. But with activist capital in play, investors might want to keep QRVO stock on the radar. Smith isn't known for sitting quietly—this could be the start of a bigger shake-up in the chip space.

Read Next:

• 7 Chipmaker Stocks Set To Gain As Trump Delays Tariff Blow On Key China Tech Imports: Bank Of America

Photo: Shutterstock