Skyworks Solutions - Earnings and Acquisition Update
Skyworks Solutions $SWKS is one of the most important suppliers of Apple $AAPL as they make the Radio Frequency (RF) Transmission semiconductor chip that acts as an antenna and allows your iPhone to connect to the network. This company is at the center of 5G.
Skywork Solutions wants to move beyond 5G and that's why they acquired the Automotive and Infrastructure business of Silicon Labs $SLAB . Of course, they had to take some debt for the first time in over a decade.
Skyworks Solutions is fairly valued today. The effects of 5G and the Internet of Things are yet to be seen. However, there are a few things we need to be careful about Skyworks Solutions. The stock is correlated with Apple stock. Also, it is considered a Growth stock $NSDQ100 and a rise in interest rates won't be that good for the stock. But as value investors, we should not focus too much on macroeconomics but rather on business fundamentals.