5 Semiconductor Stocks to Watch as Shortage Turns to Glut

In this article, we will look at 5 semiconductor stocks to watch as shortage turns to glut. If you want to read our analysis of the semiconductor industry and the major challenges it is facing, you can go to 10 Semiconductor Stocks to Watch as Shortage Turns to Glut.

5. Skyworks Solutions, Inc. (NASDAQ:SWKS)

Number of Hedge Fund Holders: 39

YTD Loss as of July 15: 36.75%

Skyworks Solutions, Inc. (NASDAQ:SWKS) supplies semiconductor components for Radio Frequency and mobile communications systems. According to Counterpoint Research, smartphone demand is expected to contract by 3% year over year globally, making global shipments fall to 1.36 billion units by the end of 2022. With a declining demand in the smartphone market and the semiconductor industry facing the problem of a surplus, Skyworks Solutions, Inc. (NASDAQ:SWKS) runs the risk of losses from an oversupply in the semiconductor industry.

On July 15, Goldman Sachs analyst Toshiya Hari slashed his price target on Skyworks Solutions, Inc. (NASDAQ:SWKS) to $97 from $120 and reiterated a Neutral rating on the shares.

Over the past 3 months, 22 Wall Street analysts have rated and given their price targets on Skyworks Solutions, Inc. (NASDAQ:SWKS). The stock has received 11 Buy ratings, 10 Hold ratings, and 1 Sell rating. The stock has a high price target of $190 and a low price target of $97. The stock’s average price target of $137.60 implies a 36.16% upside from its closing price of $101.06 on July 15.

At the end of Q1 2022, 39 hedge funds were bullish on Skyworks Solutions, Inc. (NASDAQ:SWKS) with stakes worth $780.51 million. This is compared to 41 hedge funds in the previous quarter with stakes worth $842.47 million. The hedge fund sentiment for the stock is negative.

In the second quarter of 2022, ARK Investment Management reduced its position in Skyworks Solutions, Inc. (NASDAQ:SWKS) by 5%. As of June 30, the fund owns roughly 1,300 shares of the company.