Here’s Why Skyworks Solutions (SWKS) Lost Market Share in Q1

Soumya Eswaran

Tue, Apr 15, 2025, 6:02 AM 3 min read

Investment management company Vulcan Value Partners recently released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The first quarter experienced the return of volatility. The companies’ management teams expressed a more cautious view following the recent election. Optimism has given way to uncertainty about tariffs and potential impacts on earnings, inflation, and economic growth. In the quarter, the Large Cap Composite returned -2.1% net of fees and expenses, the Small Cap Composite returned -4.5% net, the Focus Composite returned -5.8% net, the Focus Plus composite returned -6.0% and the All-Cap Composite returned -4.1% net. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its first quarter 2025 investor letter, Vulcan Value Partners emphasized stocks such as Skyworks Solutions, Inc. (NASDAQ:SWKS). Headquartered in Irvine, California, Skyworks Solutions, Inc. (NASDAQ:SWKS) designs, develops, and manufactures proprietary semiconductor products. The one-month return of Skyworks Solutions, Inc. (NASDAQ:SWKS) was -18.57%, and its shares lost 41.70% of their value over the last 52 weeks. On April 14, 2025, Skyworks Solutions, Inc. (NASDAQ:SWKS) stock closed at $57.72 per share with a market capitalization of $8.864 billion.

Vulcan Value Partners stated the following regarding Skyworks Solutions, Inc. (NASDAQ:SWKS) in its Q1 2025 investor letter:

"Skyworks Solutions, Inc. (NASDAQ:SWKS) is a leader in radio frequency (RF) systems primarily for mobile phones, wireless infrastructure, aerospace and defense, internet of things, and various other applications. Their components are mission critical and support key network technologies, including cellular, WiFi, GPS, and Bluetooth connectivity. Only a handful of companies are able to design and manufacture high-end RF components, making them important long-term partners to their customers. While results can be cyclical, Skyworks has maintained and grown its market share over time. Recently, Skyworks lost market share to a competitor which negatively affected our value and caused us to reevaluate Skyworks’s competitive position. While Skyworks’s moat is not as strong as we had originally believed, it remains one of the leading companies in a consolidating industry with high barriers to entry."

A technician using a specialized tool to mount a wireless analog system on chip.

Skyworks Solutions, Inc. (NASDAQ:SWKS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Skyworks Solutions, Inc. (NASDAQ:SWKS) at the end of the fourth quarter which was 31 in the previous quarter. While we acknowledge the potential of Skyworks Solutions, Inc. (NASDAQ:SWKS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.