We recently published a list of 15 AI News Stories Shaking Up Wall Street. In this article, we are going to take a look at where Skyworks Solutions, Inc. (NASDAQ:SWKS) stands against other AI news stories shaking up Wall Street.
U.S. President Joe Biden met with China’s President Xi Jinping at the APEC Summit in Lima, Peru, on November 16. According to the White House, the two reached an agreement affirming that human beings, not artificial intelligence, should make decisions about the use of nuclear weapons.
“The two leaders affirmed the need to maintain human control over the decision to use nuclear weapons. The two leaders also stressed the need to consider carefully the potential risks and develop AI technology in the military field in a prudent and responsible manner”.
-The White House said in a statement.
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This agreement marks a groundbreaking step in addressing two complex and challenging topics: nuclear weapons and artificial intelligence. However, it remains unclear whether the two nations will conduct additional discussions or actions on the matter.
At the same time, Xi vowed on Saturday to work with the incoming U.S. administration of Donald Trump as he held his final talks with outgoing President Joe Biden on various topics. Xi acknowledged the “ups and downs” between the countries after Trump’s election.
“China’s goal of a stable, healthy and sustainable China-U.S. relationship remains unchanged. China is ready to work with the new U.S. administration to maintain communication, expand cooperation and manage differences.”
In other trailblazing news, there is a new artificial intelligence program developed by Washington State University. Reportedly, it can spot signs of serious diseases more accurately, and faster, than trained human researchers.
According to scientists, patients can receive the results of their mammogram or MRI within an hour. Washington State Professor Michael Skinner further reveals that the process can be done in minutes, and patients don’t have to wait hours or days for their image analysis on the MRI by their physician.
“You can take that image, run it through this type of program, and it can tell you exactly where the abnormalities are. But it (the A.I. model) would still need to be trained each time.”
– Dr. Skinner.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A technician using a specialized tool to mount a wireless analog system on chip.
Skyworks Solutions, Inc. (NASDAQ: SWKS)
Market Capitalization: $13.37 billion
Skyworks Solutions, Inc. (NASDAQ: SWKS) is an American semiconductor company that designs, develops, manufactures, and markets proprietary semiconductor products. This AI play is recognized for its role in providing semiconductor components for enabling AI-driven smartphones and similar technologies.
On November 12, Skyworks Solutions, Inc. (NASDAQ: SWKS) reported its fourth-quarter results. The company reported an adjusted EPS of $1.55, surpassing the analyst consensus estimate of $1.52. Quarterly sales were $1.025 million, in line with the analyst consensus estimate. Moreover, the company forecast first-quarter 2025 revenue and profit below Wall Street estimates, indicating weak demand from automotive and industrial clients. It expects adjusted profit per share of $1.57 for the first quarter 2025, ending in December, while analyst estimates stand at $1.72 per share. Despite the modest outlook, the company believes that the consumer electronics demand is expected to rise in the holiday season, supported by smartphone market recovery and the release of new smartphones featuring AI capabilities.
“For the second year in a row, we generated over $1.6 billion of free cash flow and ended fiscal 2024 with a record 40% free cash flow margin. Looking ahead, we believe AI is poised to ignite a transformative smartphone upgrade cycle, propelling the demand for higher levels of RF complexity.”
-Liam K. Griffin, chairman, chief executive officer and president of Skyworks
Overall, SWKS ranks 11th on our list of AI news stories shaking up Wall Street. 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 time frame. If you are looking for an AI stock that is more promising than 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 is originally published at Insider Monkey.