/Skyworks%20Solutions%2C%20Inc_%20logo%20on%20phone%20and%20website-by%20T_Schneider%20via%20Shutterstock.jpg)
Valued at a market cap of $15.8 billion, Skyworks Solutions, Inc. (SWKS) designs, manufactures, and sells proprietary semiconductor products. The California-based company has primarily designed its product portfolio around two markets: cellular handsets and analog semiconductors.
Companies valued at $10 billion or more are generally considered “large-cap” stocks and Skyworks Solutions fits this criterion perfectly. The company specializes in developing analog and mixed-signal semiconductors, offering a diverse product portfolio that includes amplifiers, antenna tuners, digital radios, and more.
However, the chips company pulled back 19.6% from its 52-week high of $120.86, achieved on Jul. 16. Shares of SWKS have dropped 9.5% over the past three months, underperforming the S&P Semiconductor SPDR's (XSD) 4.9% fall over the same time frame.
In the longer term, SWKS stock is down 13.6% on a YTD basis, lagging behind XSD’s 3.8% rise. Moreover, shares of SWKS have plunged marginally over the past 52 weeks, compared to XSD’s 20.4% increase over the same time frame.
SWKS stock has been trading below its 50-day and 200-day moving average since early September, indicating a bearish trend.
Skyworks Solutions has struggled due to reduced demand in the smartphone market, particularly impacting its sales from a major client, Apple Inc. (AAPL). Shares of Skyworks Solutions dropped 6.3% in the morning session on Sep. 16, following a decline in semiconductor stocks related to concerns raised by Wall Street analysts about longer shipping times for iPhone 16 Pro models compared to the previous year.
Moreover, the stock dipped 3.5% following its Q3 earnings release on Jul. 30 due to a significant decline in revenue, primarily driven by sluggish demand for automotive chips.
Its rival, NXP Semiconductors N.V. (NXPI), has outperformed SWKS. Shares of NXPI have surged 18.1% over the past 52 weeks and 1.9% on a YTD basis.
Given SWKS’s relatively weak price action over the past year, analysts are cautious about its prospects. The stock has a consensus rating of “Hold” from the 25 analysts in coverage, and the mean price target of $115.83, reflects a 19.2% premium from the prevailing price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
