SkyWater Technology, Inc. (SKYT): A Bull Case Theory

We came across a bullish thesis on SkyWater Technology, Inc. (SKYT) on Twitter by TheUndefinedMystic. In this article, we will summarize the bulls’ thesis on SKYT. SkyWater Technology, Inc. (SKYT)’s share was trading at $11.56 as of Jan 22^nd. SKYT’s forward P/E was 185.19 according to Yahoo Finance.

A robotic arm holding a semiconductor chip, emphasizing the precision and quality of the company’s production equipment.

SkyWater Technology has positioned itself as a pivotal player in the quantum computing sector, capitalizing on its role as the only U.S.-owned pure-play silicon foundry. Through strategic partnerships, such as its collaboration with Quantum-Si, SkyWater is advancing quantum-related technologies, notably in protein sequencing platforms. The company has also forged a significant agreement with PsiQuantum to develop silicon photonic chips for future quantum systems, supporting PsiQuantum’s mission to build a commercially viable, error-corrected quantum computer. This partnership highlights SkyWater’s expertise in silicon photonics integration, which is critical for ensuring the long-term reliability of quantum chips. The U.S. government’s commitment to advancing quantum technologies, exemplified by initiatives like the CHIPS Act, is further fueling innovation in the field, with projects such as QUPICS and the Heterogeneous Quantum Networking Project receiving substantial funding. These efforts align with SkyWater’s objectives and reinforce the country’s competitive edge in quantum computing. Meanwhile, breakthroughs in photonic quantum computing, including MIT’s integrated photonic processor and South Korea’s advancements in silicon-photonic chips, illustrate the potential of photonics to revolutionize both quantum computing and AI. As quantum technologies evolve, SkyWater’s strategic partnerships and industry-wide collaborations position it at the forefront of quantum computing’s next wave, reinforcing its status as a key enabler of this cutting-edge field.

SkyWater Technology, Inc. (SKYT) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held SKYT at the end of the third quarter which was 8 in the previous quarter. While we acknowledge the risk and potential of SKYT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SKYT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.