Last year, I sold my Apple $AAPL shares to buy Skyworks Solutions $SWKS . Did I make the right choice?
The first time I bought Apple $AAPL was in 2016. It was very cheap then with a PE ratio of 10. In 2018, I bought even more shares and it became the largest position in my portfolio at 15%. Apple, however, will not win the most from 5G since it won't bring that much extra revenues or Free cash flow to them.
Skyworks Solutions, on the other hand, can make much more money, about a 40% increase in revenues for each 5G chip compared to 4G. And based on the predictions of Qualcomm $QCOM , American Tower $AMNT and other sources, we can estimate the growth of 5G in the US and worldwide and how Skyworks Solutions can profit from all of that.
Skyworks Solutions main risk was its high exposure to Apple but they are diversifying. They supply even to Tesla $TSLA and other car manufacturers now.
Skyworks Solutions remains one of the few companies without any debt.
Skyworks Solutions is currently the second largest position in my portfolio and I'm not going to buy more for now. But I think it is still cheap.
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