TD Cowen Downgrades SkyWater Technology, Inc. (SKYT) to Hold After IonQ Deal

We recently compiled a list of the 9 High Growth Small Cap Stocks That Are Profitable. The eighth stock on our list of high growth stocks is SkyWater Technology, Inc.

TheFly reported on January 27 that TD Cowen downgraded SKYT from Buy to Hold while increasing its price target to $35 from $24. The change followed the company’s agreement to be acquired by IonQ in a deal valuing SKYT at $35 per share, or approximately $1.88 billion.

TD Cowen Downgrades SkyWater Technology, Inc. (SKYT) to Hold After IonQ Deal

Similarly, on the same day, Craig-Hallum also downgraded SkyWater Technology, Inc. (NASDAQ:SKYT) from Buy to Hold and set a $35 price target following the announcement of its acquisition by IonQ. The firm indicated that the transaction is likely to be completed and said that potential concerns from other quantum customers are unlikely to derail the deal. Craig-Hallum also pointed out that SKYT’s shares are trading within roughly 10% of the agreed transaction price.

SkyWater Technology, Inc. (NASDAQ:SKYT) is a U.S.-based pure-play semiconductor foundry providing design, development, and manufacturing services for chips across aerospace, defense, automotive, and industrial markets. The company supports secure domestic production with advanced fabrication capabilities and strategic partnerships to strengthen the U.S. semiconductor supply chain.

While we acknowledge the risk and potential of SKYT 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 SKYT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.