Wednesday, March 22, 2023
HomeMarketChip Stock Skyworks Jumps After Analysts See a Bottom

Chip Stock Skyworks Jumps After Analysts See a Bottom

Skyworks makes radio-frequency semiconductors.

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Michael Vi/

Wall Street analysts are getting more optimistic that the downturn for
Solutions’ business might soon be over.

On Monday, KeyBanc Capital Markets analyst John Vinh raised his price target for
stock (ticker: SWKS) to $130 from $120. He also reaffirmed his Overweight rating for the shares after the company reported December results in line with analyst estimates and provided revenue guidance modestly below the consensus.

Skyworks “indicates March is likely the bottom and expects modest sequential growth in F3Q [June quarter],” he wrote. “We’re encouraged with these results, which were largely in line with expectations, given indications of a bottom.”

In early trading Tuesday, Skyworks stock is up 7.3% to $117.26. The shares have fallen by 14% over the last 12 months.

The company makes radio-frequency semiconductors, which enable smartphones to communicate with wireless networks.

Vinh cited how the December quarter showed Skyworks is benefiting from its large exposure to
—about 70% of its total revenue—and low exposure to China. The iPhone has been outperforming the overall smartphone market in recent quarters.

In similar fashion, Piper Sandler’s Harsh Kumar increased his stock price forecast on Monday for Skyworks to $120 from $110 and reaffirmed his Overweight rating.

The quarterly earnings “were very good results when compared to the broader industry,” he wrote.

Kumar predicts Skyworks will do better in the second half on the back of market tailwinds—including the move towards 5G and electric vehicles.

Write to Tae Kim at


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