What happened

Shares of Skyworks Solutions (SWKS -1.03%) have gained as much as 6% today to hit all-time highs after two Wall Street analysts increased their respective price targets. However, both analysts are neutral overall on the stock.

So what

Citigroup and UBS both reiterated neutral ratings on Skyworks shares. Citi analyst Atif Malik raised his price target from $137 to $164, while UBS analyst Tim Arcuri increased his valuation estimate from $139 to $165.

iPhone 12 in black

Image source: Apple.

Malik has raised his estimates and price targets for numerous semiconductor companies since capital expenditures on silicon wafer fabrication equipment have been on the rise at chip manufacturers, which is driving near-term multiple expansion.

Now what

Skyworks' largest customer Apple is preparing to report quarterly results on Wednesday. Expectations are running high for the iPhone 12 due in part to the inclusion of 5G technology throughout the lineup, which is expected to spur upgrades. Skyworks supplies wireless chips known as radio frequency (RF) modules for the popular smartphone, positioning it to benefit from booming sales of the device.

The day after the Mac maker reports earnings, Skyworks will report its fiscal first-quarter results on Thursday after market close. Skyworks issued guidance in November that calls for revenue of $1.04 billion to $1.07 billion, which should result in adjusted earnings per share of approximately $2.06.

At the time, Skyworks CFO Kris Sennesael commented, "We expect double-digit sequential revenue and earnings growth in the December quarter, fueled by content gains and product ramps across multiple 5G-enabled smartphone platforms and increased demand across our broad markets portfolio."