Analyst Optimism Suggests the Worst is Over For Skyworks Solutions' (SWKS)

Skyworks Solutions, Inc. (NASDAQ:SWKS) is one of the 10 Most Undervalued Semiconductor Stocks to Invest in. On December 11, Thomas O’Kalley of Barclays maintained his Hold rating on Skyworks Solutions, Inc. (NASDAQ:SWKS) stock, along with the price target of $88. This price target remains well above the median price target of $75 and offers 31% upside from the current level.

SWKS has struggled since the announcement of the merger with Qorvo (NASDAQ:QRVO), but the stock has been rallying for the past month, and Barclays’ $88 price target may add further to the bullish sentiment. Investors were possibly spooked by the amount of time it may take for the merger to financially benefit the company. The merger is expected to be executed by early 2027, with about $500 million in cost savings expected by 2028-2029. The cash-and-stock transaction is weighing heavily on the stock, as is the risk of regulatory approval.

The regulatory risk stems from the fact that both Skyworks and Qorvo are competitors and significant suppliers for one company: Apple Inc. (NASDAQ:AAPL). A merger would reduce competition in RF components, increasing Apple’s dependence on a single supplier. This reduced competition is generally bad for the end consumer, which is why regulators usually side with companies like Apple in such merger scenarios.

Skyworks Solutions, Inc. (NASDAQ:SWKS) specializes in radio-frequency and analog solutions. These products enable wireless connectivity across industrial applications, automotive systems, and smartphones, among other things. It is based in Irvine, California.

While we acknowledge the potential of TSLA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT:  Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy and 30 Most Fantastic Stocks Every Investor Should Pay Attention To.

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