Skyworks Solutions Outlook - Technical Weakness and Analyst Divergence Signal Cautious Sentiment

Market Snapshot

Headline Takeaway: Skyworks Solutions faces bearish technical signals with a weak overall trend; internal diagnostic scores show the stock is not currently favorable for investment.

News Highlights

• McKinsey Report on Tariffs and Semiconductor Chains: A new analysis by McKinsey highlights the potential impacts of U.S. tariff policies on semiconductor manufacturing, which could create additional headwinds for Skyworks Solutions, a key player in chip manufacturing. The sector is under increased scrutiny amid ongoing trade tensions and regulatory uncertainty.
• US Semiconductors ETF SOXX Faces $750M Outflow: The ETF SOXX, which includes Skyworks Solutions among its holdings, saw a significant net outflow of $750 million in May 2025. This may signal investor skepticism toward the broader semiconductor sector, potentially affecting SWKS’ liquidity and momentum.
• Japan’s Rare Earths and Semiconductor Cooperation Proposals: Japan is exploring greater cooperation with the U.S. in rare earth and semiconductor supply chains. While this could be a positive development for the sector long-term, it might also increase global competition for Skyworks Solutions, especially with Asian peers gaining ground in domestic production initiatives.

Analyst Views & Fundamentals

The current analyst landscape for Skyworks Solutions shows a mixed and inconsistent outlook. The simple average rating score is 2.33, while the performance-weighted rating is 1.17. These figures reflect a generally negative sentiment, especially from Citigroup and Susquehanna, which have both rated the stock as “Underperform.” These ratings are not uniformly aligned with the recent price trend, which shows a slight rise of 0.90% over the last five days. The divergence between analyst expectations and market behavior indicates a lack of consensus and elevated uncertainty.

Fundamental Factors

• Net cash flow from operating activities per share (YoY growth rate): -93.20% – internal diagnostic score of 3.00
• Net profit attributable to parent company shareholders / Net profit: 100.00% – score 2.00
• EV/EBIT: 108.80 – score 1.00
• Accounts receivable turnover ratio: 4.59 – score 0.00
• Total profit (YoY growth rate): -34.14% – score 0.00
• Net cash flow from operating activities (YoY growth rate): -26.84% – score 1.00
• Interest coverage ratio (EBIT / Interest expense): 22.53% – score 1.00
• Diluted earnings per share (YoY growth rate): -43.97% – score 0.00
• Net profit attributable to parent company shareholders (YoY growth rate): -44.36% – score 2.00
• Cash-MV: 0.33 – score 2.00

The fundamentals show mixed performance. While some factors like net profit attribution and EV/EBIT are favorable, others—such as operating cash flow and earnings per share—indicate deteriorating performance and bearish momentum. The overall fundamental score is 2.29, suggesting moderate caution for long-term investors.

Money-Flow Trends

Recent money-flow patterns for Skyworks Solutions show a positive overall trend with 7.70 internal diagnostic score. This suggests that institutional and large-cap investors have been moderately active buyers in the last five days. However, the flow isn’t evenly distributed across all investor sizes. While the extra-large and medium-sized investors are showing positive inflows, large-sized investors have been net sellers. Retail (small-cap) investors also contributed with a 51% inflow ratio. The overall inflow ratio is 56.11%, showing a net accumulation by big money and retail segments. Despite this, the bearish technical trend and weak fundamentals may limit the stock’s upside in the near term.

Key Technical Signals

The technical outlook for Skyworks Solutions is heavily bearish, with 5 bearish indicators and only 0 bullish signals over the last five days. The internal diagnostic score is 1.88, which is well below the threshold for long-term bullish confidence. Here’s a breakdown of key indicators:

• MACD Death Cross – internal diagnostic score 1.00
• Hanging Man – internal diagnostic score 1.00
• Ex-Dividend Date – internal diagnostic score 1.00
• Dividend Record Date – internal diagnostic score 1.00
• Bullish Engulfing – internal diagnostic score 1.00
• WR Overbought – internal diagnostic score 6.28

These signals are predominantly bearish, with the most notable recent pattern being the Hanging Man on 2025-09-08, a classic reversal pattern indicating a potential pullback. The MACD Death Cross on 2025-09-02 and Ex-Dividend Date on 2025-08-26 also signal weakening momentum and investor sentiment. Taken together, the technical indicators suggest a high risk of further price decline, especially in the near term.

Conclusion

Given the weak technical signals, mixed analyst sentiment, and moderate to weak fundamentals, investors should exercise caution with Skyworks Solutions. The stock is currently facing a high bearish bias, as reflected in both internal diagnostic scores and recent market behavior. The key takeaway is to avoid aggressive buying in the near term and consider holding cash or waiting for a clearer reversal signal before considering entry. Investors should also monitor upcoming earnings and sector-specific news for any potential catalysts that might shift the stock’s trajectory.