A Big Upgrade for Skyworks Solutions

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After Skyworks Solutions (Nasdaq: SWKS  ) spent years at nothing better than a three-star rank, enough top-performing CAPS members have turned bullish on it recently to put it at a more impressive four-star level. A total of 396 members have given their opinion on the semiconductor manufacturer, with many of them offering analysis and commentary explaining the recent optimism.

Skyworks provides analog and mixed-signal semiconductors for multiple end markets such as handsets, CATV, and infrastructure and serves top customers like Motorola (NYSE: MOT  ) , Nokia (NYSE: NOK  ) , Broadcom (Nasdaq: BRCM  ) , and Research In Motion (Nasdaq: RIMM  ) . Many CAPS members like its solid position and the recent increase in demand for semiconductors that helped Skyworks finish off fiscal 2009 with a solid quarter. It reported a strong increase in fourth-quarter revenue and earnings over the previous quarter and forecast first-quarter results above analysts' expectations.                             

The company sees the beginning of a new growth phase and is benefiting from growth trends in the mobile Internet, smart grid and energy management solutions, and the emergence of multiple analog applications. While it has a strong position that it has established in the booming smartphone market, it's also building its presence on the infrastructure side, where it expects a large increase in network expansion to keep up with data traffic. It's now supporting market players like Cisco (Nasdaq: CSCO  ) and Alcatel Lucent (NYSE: ALU  ) and developing new higher-margin products to meet demand. It's focused on gaining share in its markets and diversifying into new ones, and many CAPS members think it has well-run operations that will enable it to effectively do so.    

Do you think Skyworks Solutions deserves its raised status? Add your thoughts in the comments box below on this page, or head over to CAPS to rate the company and check out all the information and opinions the community offers, absolutely free.