Stock Analysis | Skyworks Solutions Outlook - Technical Strength Meets Mixed Analyst Sentiment

1. Market Snapshot

Takeaway: Skyworks Solutions (SWKS) is exhibiting strong technical indicators with an internal diagnostic score of 7.12 (0-10), suggesting cautious optimism, while fundamentals remain mixed with a score of 4.96.

2. News Highlights

• Japan U.S. Semiconductor Cooperation: Recent reports highlight Japan's plan to offer U.S. proposals for collaboration on rare earths and semiconductors. This could ease supply chain tensions and benefit companies like Skyworks in the long run.
• AI Chip Startups in India: Executives from Intel and AMD are launching new ventures in India, signaling a growing AI chip ecosystem. While this is a positive for the sector overall, it could increase competition for firms like Skyworks in the future.
• Evaluating NVIDIA: Multiple recent articles compare NVIDIA with its peers in the semiconductor equipment industry. These evaluations often highlight NVIDIA’s leadership, which indirectly puts Skyworks in a more competitive light as it works to differentiate its offerings in the AI and communication chips space.

3. Analyst Views & Fundamentals

Analysts remain divided on Skyworks. The simple average rating is 2.33 (on a 5-point scale), while the performance-weighted rating is 1.17, indicating that past performance heavily influences current expectations. Notably, there is no consensus among analysts, with recent ratings showing both 'Neutral' and 'Strong Sell' positions.

This lack of consensus contrasts with the stock’s 2.74% price rise in the last five days. While fundamentals are not overly strong, key metrics such as Operating Cash Flow per Share (YoY -8.50%) and Net Profit Margin (100.00%) suggest underlying operational strength and efficiency.

Other key fundamentals include:

• Interest Coverage Ratio: 22.53% (internal diagnostic score: 7.00)
• Gross Profit Margin (GPM): 41.08% (internal diagnostic score: 5.14)
• Net Cash Flow from Operating Activities (YoY -26.84%): internal diagnostic score: 9.38
• Cash-MV: 32.71% (internal diagnostic score: 15.69)

4. Money-Flow Trends

Skyworks is experiencing mixed money-flow trends. While block flows (large institutional trades) are showing a positive trend, retail and mid-sized institutional flows are trending negatively. For example:

• Small Inflows: 49.38% of inflows are from small investors (trend: negative)
• Medium Inflows: 49.58% (trend: negative)
• Large Inflows: 50.38% (trend: positive)
• Extra-large Inflows: 49.89% (trend: negative)

With an internal diagnostic score of 7.62, the overall flow is good, indicating that big money is selectively accumulating Skyworks while smaller players remain cautious.

5. Key Technical Signals

Technically, Skyworks is showing bullish bias, driven by a Shooting Star pattern (internal diagnostic score: 7.91) and a Williams %R Overbought condition (internal diagnostic score: 6.33). These patterns suggest a potential upward correction in the near term.

Over the past five days, key patterns such as the Shooting Star and WR Overbought have appeared on key dates (e.g., August 19 and 25). While the direction is not yet clear, the dominance of bullish indicators (1 bullish vs 0 bearish) implies a cautious but optimistic stance.

6. Conclusion

Skyworks Solutions is showing technical strength with an internal diagnostic score of 7.12, and fundamentals remain in a mixed but stable state. Analysts are divided, and money flow is mixed between retail and institutional players. While the recent 2.74% price rise suggests momentum, the lack of consensus and the presence of a Shooting Star pattern imply that traders should consider waiting for a pull-back before entering long positions. Investors with a medium-term outlook might want to watch upcoming earnings for confirmation of trend strength.