Investment management company Vulcan Value Partners recently released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. All the strategies of Vulcan Value Partners delivered positive results in the year. The Large Cap Composite (Net) returned -1.5% in Q4 and 7.9% YTD, the Small Cap Composite (Net) gained 3.2% in Q4 and 9.5% YTD, The Focus Composite (Net) retuned 0.1% in Q4 and 7.1% YTD, Focus Plus Composite (Net) returned 0.1% in Q4 and 6.2% YTD and the All-Cap Composite (Net) returned 1.3% in Q4 and 10.7% YTD. Despite overvalued markets, the firm improved its price-to-value ratios while still achieving positive returns, prioritizing safety and long-term gains over short-term performance. This situation echoes the late 1990s dot-com bubble, where hype and high valuations led to a crash, and today’s AI disruptions seem to mirror that pattern, with investors risking overpaying for promising businesses. The firm is addressing such situations by sticking to its investment discipline. For more information on the firm’s best picks in 2025, please check its top five holdings. In addition, please check the firm’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Vulcan Value Partners highlighted stocks like Skyworks Solutions, Inc. (NASDAQ:SWKS). Vulcan Value Partners exited its holdings in Skyworks Solutions, Inc. (NASDAQ:SWKS) from its Large Cap and All Cap Strategies during the quarter. Headquartered in Irvine, California, Skyworks Solutions, Inc. (NASDAQ:SWKS) designs, develops, and manufactures semiconductor products. Skyworks Solutions, Inc. (NASDAQ:SWKS) shares traded between $47.93 and $93.33 over the past 52 weeks. On January 22, 2026, Skyworks Solutions, Inc. (NASDAQ:SWKS) stock closed at $59.67 per share. One-month return of Skyworks Solutions, Inc. (NASDAQ:SWKS) was -7.07%, and its shares lost 19.41% of their value over the last three months. Skyworks Solutions, Inc. (NASDAQ:SWKS) has a market capitalization of $8.946 billion.
Vulcan Value Partners stated the following regarding Skyworks Solutions, Inc. (NASDAQ:SWKS) in its fourth quarter 2025 investor letter:
“Skyworks Solutions, Inc. (NASDAQ:SWKS) is a leading designer and manufacturer of semiconductors used in radio frequency (RF) solutions for wireless communications. The company’s products transmit and receive a wide array of different signals, including cellular, Bluetooth, Wi-Fi, and GPS. While smartphones account for approximately two-thirds of revenue, Skyworks also generates revenue from Wi-Fi, automotive, aerospace & defense, and other IoT applications. There are only a few companies in the world capable of designing and manufacturing high-performance RF chips. Growth in the industry is driven by both an increasing number of wireless devices, as well as higher RF content per device. Higher RF spending is driven by demand for higher data throughput, lower latency, and smaller size chips. During the quarter, we sold Skyworks to take advantage of more discounted opportunities, but we continue to like the business and follow it closely. In fact, after we sold Skyworks, the Company made a bid for Qorvo, which we continue to hold. Both businesses are very similar and we continue to hold Qorvo because it is more discounted than Skyworks. If the acquisition is consummated, we will become Skyworks shareholders once again. Qorvo remains discounted on a stand-alone basis, and it is even more discounted on a combined basis.”
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 the list of most undervalued semiconductor stocks to invest in. 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.
