Why Skyworks Solutions Inc. (SWKS) Crashed Last Week

We recently compiled a list of the These 10 Firms Were Last Week’s Worst Performers. In this article, we are going to take a look at where Skyworks Solutions Inc. (NASDAQ:SWKS) stands against the other stocks.

Volatile trading persisted on the stock market last week as investors scrambled to react to a flurry of positive and negative news that sparked both buying and selling positions.

On Friday alone, all Wall Street main indices fell into the red territory, with trading dampened mainly by tariff threats and expectations of a higher inflation rate in the US.

Ten companies under mixed sectors also mirrored the decline, with each booking double-digit slumps. This article details which 10 companies suffered the most last week and what specifically caused investor pessimism.

To come up with last week’s worst performers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A technician using a specialized tool to mount a wireless analog system on chip.

Skyworks Solutions Inc. (NASDAQ:SWKS)

Skyworks saw its share prices drop by 26 percent last week to close at $65.69 apiece from the $88.76 registered a week earlier as investors sold off positions following an announcement that technology giant Apple Inc. it would reduce its reliance on Skyworks’ semiconductors for components of its upcoming iPhone 17.

This spells bad news for the company, with Apple being one of its largest customers. Last quarter alone, Apple accounted for 72 percent of SWKS’ total revenues.

According to SWKS’ Chief Finance Officer Kris Sennesael, the company’s content share in the new iPhone is expected to decline by up to 25 percent despite securing multiple sockets, including highly integrated RF modules.

Following the announcement, a number of investment banking firms moved to downgrade Skyworks’ rating.

Analysts from Stifel said they slashed their stock rating for the company from “buy” to “hold,” while Mizuho analysts said they cut their rating for the company from “outperform” to “neutral,” citing continued headwinds through at least the iPhone 18 launch and limited near-term catalysts.

Overall SWKS ranks 5th on our list of last week’s worst performers. 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.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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