SkyWater Technology SKYT surges 8.93% on strong earnings momentum and analyst upgrades

SkyWater Technology (SKYT) surged 8.93% in pre-market trading on December 23, 2025, driven by strong earnings momentum and analyst upgrades. The stock, which closed at $16.57 the previous day, opened at $17.30 and climbed to $18.16, reflecting renewed investor confidence in its semiconductor manufacturing growth strategy.

Recent quarterly results highlighted a 36.36% profit margin and $150.74 million in Q3 revenue, outpacing industry averages. Analysts at TD Cowen raised their price target to $24 from $22, citing SkyWater’s expanding market share in aerospace and defense sectors. Additionally, the company’s 12.27% year-to-date total return outperformed the S&P 500, attracting momentum-driven investors.

Positive sentiment was further bolstered by its low forward P/E ratio of 6.92 and a 97.29% return on equity, underscoring strong capital efficiency. With a $875.57 million market cap and recent strategic investments in analog and rad-hard IC production, SkyWater appears positioned to capitalize on long-term industry tailwinds despite broader market volatility.

With its expanding aerospace and defense contracts, SkyWater Technology has demonstrated resilience in its financials, including a 36.36% profit margin. The company's recent focus on analog and rad-hard IC production suggests a strong growth trajectory, supported by a rising market cap and strategic capital allocation. Institutional interest has been growing as the stock continues to trade near key resistance levels, indicating potential for further upward movement.