Why Skyworks Solutions (SWKS) Stock Went Down On Thursday?

We recently published a list of 10 Firms Hit Hard in Thursday’s Trading. In this article, we are going to take a look at where Skyworks Solutions, Inc. (NASDAQ:SWKS) stands against other firms that hit hard in Thursday’s trading.

Shares of 10 companies were hit hard on Thursday, bucking a mostly optimistic broader market, as investor sentiment was dragged down by disappointing earnings performances and loss of key partnerships.

The Dow Jones was the sole decliner during the day, losing 0.28 percent in its valuation. In contrast, the S&P 500 and Nasdaq Composite both ended firmer, rallying by 0.36 percent and 0.51 percent, respectively.

This article details the reasons behind the 10 companies’ lackluster performance.

To come up with Thursday’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)

Shares of Skyworks Solutions, Inc. (NASDAQ:SWKS) fell by nearly 25 percent on Thursday to end at $65.6 apiece after technology giant Apple Inc. announced that it would reduce its reliance on Skyworks’ semiconductors for components in the upcoming iPhone 17.

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

According to the company, Apple accounted for 72 percent of its revenues in the last quarter.

Following the announcement, several investment banking firms downgraded Skyworks (NASDAQ:SWKS)’ 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 1st on our list of firms that hit hard in Thursday’s trading. While we acknowledge the potential of SWKS as an investment, our conviction lies in the belief that 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.