We recently compiled a list of the 15 Semiconductor Stocks Making Impressive Comeback From DeepSeek AI Dip. In this article, we are going to take a look at where Skyworks Solution, Inc. (NASDAQ:SWKS) stands against the other semiconductor stocks.
The semiconductor industry has always been a battleground for technological development, though lately, it has turned into a full-scale battle. The US and China are not only vying to outpace each other in the race to achieve AI superiority but are also actively trying to slow each other down.
The US for instance has placed a number of export restrictions on global firms selling semiconductor technologies to China. Many leading US companies have had to deal with declining China sales as a result of these restrictions. On the other hand, China is trying its best to come up with technologies that compete with those in the US, despite restrictions.
The emergence of DeepSeek AI at the end of January was a wake-up call for the Americans, with China building its latest AI model for a fraction of the cost that the US counterparts spend on their models. While the validity of these claims is debatable, it does show how far China has come when it comes to competing with the US.
As a result of the DeepSeek AI announcement, many semiconductor stocks took a big hit. Two weeks later, some of the stocks started recovering and investors started feeling comfortable with the thought of continued technological dominance by the US. We therefore decided to look at the semi-stocks that were making a comeback from the DeepSeek dip.
To come up with the list of 15 semiconductor stocks making a comeback from DeepSeek AI dip, we only considered stocks with a market cap of at least $10 billion that beat the S&P 500 in the last 5 days of trading.
A technician using a specialized tool to mount a wireless analog system on chip.
Skyworks Solution, Inc. (NASDAQ:SWKS)
Skyworks Solution, Inc. (NASDAQ:SWKS) is a developer, designer, manufacturer, and marketer of proprietary semiconductor products. The company offers attenuators, demodulators, digital power isolators, low-noise amplifiers, interface circuits, and other products. The company serves automotive, cellular infrastructure, defense, medical, aerospace, and other markets. The stock is up 0.53% in the last 5 trading days against the S&P 500’s 1.13% gains. Even though the stock underperformed the index, it gained nearly 3% after Tuesday’s big drop, making it a worthy performer for the week.
The company’s shares fell earlier this month after it released the Q1 2025 earning report that indicated a sharper-than-expected decline in the biggest segment sales. Skyworks Solution, Inc. (NASDAQ:SWKS)’s top-line figure fell by 11.1%, greater than the anticipated decline of 10.8%. This decline in revenue was not surprising as Wall Street analysts had already predicted it.
Despite the decline in revenue, the company is expanding in Android smartphone and non-smartphone areas which is a good sign. As per CEO Griffin:
Skyworks Solution, Inc. (NASDAQ:SWKS) started the new fiscal year with solid results, growing revenue 4% sequentially and surpassing the midpoint of our guidance. We have observed consistent improvement in demand indicators within Broad Markets, while we have successfully supported multiple new product launches in Mobile.
The company’s ability to bounce back from this will be tested in the coming months as investors digest the poor returns in the last 3 years.
Overall SWKS ranks 11th on our list of the semiconductor stocks that are making impressive comeback from DeepSeek AI Dip. While we acknowledge the potential of SWKS 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 as promising as SWKS 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.