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B. Riley Cuts Skyworks (SWKS) Target as Android Weakness Weighs on Outlook

Skyworks Solutions, Inc. (NASDAQ:SWKS) is included among the 14 High Yield Dividend Stocks with Sustainable Payouts.

On January 26, B. Riley analyst Craig Ellis cut his price objective on Skyworks Solutions, Inc. (NASDAQ:SWKS) to $60 from $70. The analyst kept a Neutral rating on the stock. In a research note, he said Q4 results should come in slightly above consensus, helped in part by the iPhone 17 cycle. Q1 guidance, though, is expected to be in line with lower, reflecting weaker conditions in the Android business.

Skyworks had struck a more upbeat tone earlier. In November, the company forecast first-quarter revenue and profit above Wall Street estimates, pointing to strong demand for its radio-frequency chips used in Apple’s latest 5G iPhones. The rapid rollout of 5G smartphones, along with the early push into AI-enabled devices, has supported demand. Skyworks remains a key supplier of radio-frequency chips for 5G and continues to benefit from Apple’s annual iPhone launch.

Beyond smartphones, growth in Skyworks’ broad markets segment has also picked up. That business supplies chips to automotive, industrial, and Internet of Things applications. Adoption of WiFi 7, the rise of connected vehicles, and AI-driven upgrades are driving demand across those end markets.

In October, Skyworks announced a cash-and-stock offer to acquire rival Qorvo, a move that would create a radio-chip company valued at roughly $22 billion. The deal values Qorvo at $9.76 billion. Both companies are major suppliers to Apple and other smartphone makers, providing chips that manage the radio signals used to transmit wireless data.

Skyworks Solutions, Inc. (NASDAQ:SWKS) designs wireless networking products. Its analog and mixed-signal semiconductors support a wide range of applications, connecting devices and systems across multiple industries.

While we acknowledge the potential of SWKS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SWKS and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 13 Best February Dividend Stocks To Buy and 12 Best Dow Jones Dividend Stocks to Buy According to Hedge Funds

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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