Skyworks Solutions Predicts Earnings Boost Thanks to 5G Chip Demand

• Q2 adjusted profit forecast at $1.04 per share with revenue projected between $875-925 million, exceeding analyst estimates of $869.7 million
• Q4 revenue reached $1.04 billion, slightly above the $1 billion estimate, boosted by iPhone 17 demand and 5G chip adoption
• Growth driven by multiple segments including 5G phones, Wi-Fi 7, data center infrastructure, and its position as an Apple supplier for radio-frequency chips

Summary: Skyworks Solutions Predicts Earnings Boost Thanks to 5G Chip Demand

Skyworks Solutions issued an optimistic second-quarter earnings forecast on February 3, exceeding analyst expectations on the strength of 5G chip demand. The company projected Q2 revenue between $875 million and $925 million, surpassing the consensus estimate of $869.7 million. Expected adjusted earnings per share of $1.04 also topped projections.

Key Drivers:

The semiconductor manufacturer is benefiting from robust demand for radio-frequency chips used in 5G phones, particularly as a supplier to Apple's 5G iPhone lineup. Sales were notably boosted by strong demand for the iPhone 17 across key markets.

Company Profile:

Skyworks designs and manufactures analog and mixed-signal chips for wireless communication, automotive, industrial, and consumer electronics applications. Beyond mobile devices, the company's Broad Market segment showed continued growth driven by Wi-Fi 7, data center, and cloud infrastructure programs.

Recent Performance:

Fourth-quarter revenue reached $1.04 billion, slightly exceeding the $1 billion analyst estimate, demonstrating sustained momentum in the business.

Market Implications:

The positive guidance suggests continued strength in 5G adoption and smartphone demand, particularly for premium devices. The diversification into Wi-Fi 7 and infrastructure markets indicates Skyworks is successfully expanding beyond its traditional mobile focus. This outlook may signal broader health in the semiconductor sector, particularly for companies exposed to 5G infrastructure and next-generation wireless technologies. Investors may view this as confirmation that 5G chip demand remains resilient despite broader economic uncertainties.