Stock Analysis | Skyworks Solutions Outlook - A Weak Technical Picture Despite Strong Fund-Flow Trends

Market Snapshot

Takeaway: Skyworks Solutions (SWKS) is underperforming with a recent price drop of -2.70% and a weak technical outlook, while large-scale fund flows remain positive.

News Highlights

Recent news impacting the semiconductor sector has been mixed:

• May 30: McKinsey Tariff Analysis – A new report from McKinsey & Co. discusses the ongoing uncertainty around U.S. tariffs and their potential impact on chip supply chains, adding regulatory risk to the sector.
• May 28: $750M ETF Outflow – The U.S. Semiconductors ETF (SOXX) reported a net outflow of $750 million in May 2025, signaling investor caution toward semiconductor exposure amid macroeconomic headwinds.
• May 30: Japan-U.S. Cooperation Talks – Japan announced plans to propose increased cooperation with the U.S. in rare earths and semiconductors, potentially aiming to reduce reliance on China and support supply chain diversification.

Analyst Views & Fundamentals

The analyst landscape for SWKS is divided. The simple average rating is 2.33, while the weighted performance-based rating is 1.17, showing that recent performance has dragged down expectations. Rating consistency is low, with three different ratings issued in the last 20 days: one "Strong Sell" and two "Neutral." Analysts such as Timothy Arcuri (UBS) and Christopher Adam Jackson Rolland (Susquehanna) have had mixed historical track records, with only UBS showing a 50% win rate.

On the fundamental side, key metrics show mixed signals. Here are the latest values (all as of most recent reporting):

• Net profit attributable to parent company shareholders / Net profit: 100.00% (score: 2)
• EV/EBIT: 108.80 (score: 2)
• Interest coverage ratio (EBIT / Interest expense): 22.53% (score: 1)
• Net cash flow from operating activities per share (YoY growth rate): -95.35% (score: 2)
• Cash-to-Market Value (Cash-MV): 0.33 (score: 2)

Note that while some cash and debt indicators remain strong, profit and operating cash flow figures are sharply negative, raising concerns about short-term earnings quality.

Money-Flow Trends

Big money is still flowing into Skyworks Solutions, despite the weak price action. The fund-flow score is 8.08, classified as "excellent." Large and extra-large investors are particularly active, with inflow ratios of 51.72% and 61.09%, respectively. Small investors are also showing optimism, with a 50.70% inflow ratio. The overall inflow ratio across all fund sizes stands at 58.36%, suggesting that institutional money continues to see value in the stock.

Key Technical Signals

The technical outlook for SWKS is extremely bearish. Our internal diagnostic score is 2.06, indicating significant risk of further decline. Four out of five indicators are bearish, with none showing bullish momentum:

• MACD Death Cross: Score 1 – a classic bearish reversal pattern.
• Ex-Dividend Date: Score 1 – historically linked to short-term price declines.
• Dividend Record Date: Score 1 – also historically bearish, with a 25% win rate.
• Bullish Engulfing: Score 1 – ironically flagged as bullish but has shown a negative outcome in 83.33% of cases.
• WR Overbought: Score 6.28 – the only mildly positive signal, but not enough to offset the bearish trend.

Recent chart patterns over the last five days include a MACD Death Cross on September 2 and a Bearish Engulfing pattern on August 27. These are both high-probability bearish signals.

Conclusion

While large investors remain optimistic and cash flow fundamentals aren’t entirely negative, the technical picture for Skyworks Solutions is very weak. With four bearish indicators and no bullish signals, the current trend suggests the stock is at risk of further declines. Investors are advised to consider waiting for a pull-back or clearer signs of technical improvement before entering new long positions. In the meantime, the ETF outflow and analyst caution make this a stock to monitor closely, but likely avoid in the near term.