Skyworks Solutions (SWKS) Traded Down in Q4. Here’s Why

Pzena Investment Management recently released its fourth-quarter 2025 commentary for “Pzena Focused Value Strategy.” A copy of the letter can be downloaded here. The fourth quarter was defined by strong AI momentum and continued market dominance by mega-cap stocks. In this environment, Pzena Focused Value Strategy underperformed the Russell 1000® Value Index, delivering a net return of 2.5% vs. 3.8% for the Index. Given the limited leadership in the market, the firm still observes appealing valuation differences and believes the current environment is favorable for long-term value investors. In addition, you can check the Fund’s top five holdings to see its best picks for 2025.

In its fourth-quarter 2025 investor letter, Pzena Focused Value Strategy highlighted Skyworks Solutions, Inc. (NASDAQ:SWKS) as one of its leading individual detractors. Headquartered in Irvine, California, Skyworks Solutions, Inc. (NASDAQ:SWKS) designs, develops, and manufactures semiconductor products. On January 30, 2026, Skyworks Solutions, Inc. (NASDAQ:SWKS) stock closed at $55.76 per share. One-month return of Skyworks Solutions, Inc. (NASDAQ:SWKS) was -14.43%, and its shares lost 34.57% of their value over the last twelve months. Skyworks Solutions, Inc. (NASDAQ:SWKS) has a market capitalization of $8.36 billion.

Pzena Focused Value Strategy stated the following regarding Skyworks Solutions, Inc. (NASDAQ:SWKS) in its fourth quarter 2025 investor letter:

“Basic materials, health care, and technology were the largest detracting sectors during the quarter. Semiconductor company Skyworks Solutions, Inc. (NASDAQ:SWKS) traded down during the quarter on weaker forward guidance and concerns around mobile demand and customer concentration. This occurred despite better-than-expected quarterly results and the announced acquisition of competitor Qorvo, creating a combination of the second- and third-largest players in radio frequency smartphone component suppliers.”

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

Skyworks Solutions, Inc. (NASDAQ:SWKS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 35 hedge fund portfolios held Skyworks Solutions, Inc. (NASDAQ:SWKS) at the end of the third quarter, compared to 39 in the previous quarter. While we acknowledge the risk and potential of Skyworks Solutions, Inc. (NASDAQ:SWKS) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Skyworks Solutions, Inc. (NASDAQ:SWKS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Skyworks Solutions, Inc. (NASDAQ:SWKS) and shared Vulcan Value Partners’ views on the company. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.