Company Performance - SkyWater Technology, Inc. (SKYT) closed at $9.94, reflecting a -3.07% change from the previous day's closing price, underperforming the S&P 500 which lost 0.33% [1] - Over the past month, shares of SkyWater Technology gained 16.21%, outperforming the Computer and Technology sector's gain of 5.24% and the S&P 500's gain of 4.07% [1] Earnings Expectations - The upcoming earnings release is expected to show an EPS of -$0.17, indicating a 950% decline compared to the same quarter last year [2] - Revenue is projected at $57.3 million, reflecting a 38.6% decrease from the equivalent quarter last year [2] Fiscal Year Projections - For the entire fiscal year, the Zacks Consensus Estimates project earnings of -$0.01 per share and revenue of $307.15 million, representing changes of -116.67% and -10.26% respectively from the prior year [3] Analyst Estimates - Recent changes to analyst estimates for SkyWater Technology should be noted, as they reflect shifting dynamics in short-term business patterns [4] - Upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability [4] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a track record of success, with 1 stocks delivering an average annual return of +25% since 1988 [6] - SkyWater Technology currently holds a Zacks Rank of 3 (Hold), with the Consensus EPS estimate remaining stagnant over the past month [6] Industry Overview - The Electronics - Semiconductors industry, part of the Computer and Technology sector, has a current Zacks Industry Rank of 87, placing it in the top 36% of all industries [7] - The Zacks Industry Rank assesses the vigor of specific industry groups, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Core Insights - SkyWater Technology (SKYT) achieved a significant turnaround in profitability in Q1 2025, with non-GAAP gross profit increasing to $14.8 million from $13.4 million, resulting in a gross margin of 24.2%, a 730-basis-point improvement year over year [2][10] - The launch of ThermaView in January 2025 has driven a 70% sequential increase in Wafer Services revenues, reaching $7.5 million, indicating a shift in SkyWater's product mix towards new offerings [3][10] - Management anticipates continued growth in Wafer Services throughout 2025, supported by customer ramps and a growing innovation pipeline, alongside the recent acquisition of Fab 25 to expand manufacturing capacity [4][10] Financial Performance - SkyWater expects both GAAP and non-GAAP gross margins to remain in the 23%-27% range for the full year 2025, with potential for further upside due to improved cost control and a more disciplined tools mix [5][10] - The Zacks Consensus Estimate for 2025 revenues is projected at $307.15 million, reflecting a 10.26% decline from 2024, while the estimated loss is pegged at 1 cent per share, indicating a sharp decline of 116.67% year-over-year [12] Competitive Landscape - GlobalFoundries (GFS) reported $1.6 billion in Q1 2025, significantly outpacing SkyWater, with strengths in strategic partnerships and AI-related semiconductor manufacturing [6] - ON Semiconductor (ON) focuses on intelligent power and sensing solutions, leveraging a vertically integrated model that provides cost advantages, particularly in the growing EV market [7] Share Price and Valuation - SkyWater shares have declined 23.3% year to date, contrasting with a 7% return in the broader Zacks Computer and Technology sector and a 13.4% rise in the Electronics – Semiconductors industry [8] - Currently, SkyWater is trading at a forward 12-month Price/Sales ratio of 1.48X compared to the industry's 8.6X, with a Value Score of B [11]

Core Insights - SkyWater Technology (SKYT) shares are currently undervalued with a Value Score of B and a forward 12-month price/sales (P/S) ratio of 1.4X, significantly lower than the industry average of 8.5X [1][7] - The company has seen a strong performance in its newly launched ThermaView platform, which contributed to a 70% quarter-over-quarter increase in Wafer Services revenues, reaching $7.5 million in Q1 2025 [9][11] - The acquisition of Fab 25 enhances SkyWater's foundry capabilities, adding 400,000 wafer starts annually and generating over $1 billion in contracts, which is expected to boost revenues and cash flow immediately [13][14] Financial Performance - SkyWater's stock has outperformed the broader Zacks Computer and Technology sector, with an 11.9% increase over the past month compared to the sector's 6% and the industry's 7.1% growth [9] - For 2025, SkyWater expects a revenue growth range of 5% for combined Advanced Technology Services (ATS) and Wafer Services, with a consensus estimate of $307.15 million, indicating a 10.26% decline from 2024 [18] - The company anticipates second-quarter 2025 revenues between $55-$60 million, with ATS revenues projected at $49-$53 million, reflecting a 38.6% decline from the previous year [19] Market Position and Growth Drivers - The ThermaView platform is positioned in the growing advanced thermal imaging market, projected to reach $9 billion by 2027, indicating long-term growth potential across various sectors [11] - SkyWater's focus on quantum computing is significant, with over 90% of its advanced computing revenues in 2024 related to quantum technology development [15] - The company maintains a Zacks Rank 1 (Strong Buy) and a Growth Score of A, indicating a strong investment opportunity [22]

Financial Performance & Outlook - SkyWater reported Q1 2025 revenue of $613 million, exceeding the midpoint of their guidance[131] - The company anticipates approximately 5% revenue growth for the combined ATS and Wafer Services business in fiscal year 2025, with a potential variance of ± 2%[40] - SkyWater expects Tools revenue to be around $30 million, primarily concentrated in the second half of the year and related to the Florida operations[140] - For Q2 2025, SkyWater projects total revenues in the range of $55 million to $60 million, with ATS revenues between $49 million and $53 million, Wafer Services revenues between $5 million and $6 million, and Tools revenue just under $1 million[40] Strategic Initiatives - SkyWater announced the acquisition of Infineon's Austin Fab 25 for $110 million, which is expected to add approximately $300 million in annual revenue[104] - The company secured $120 million in DOD program funding for a 300mm wafer fan-out initiative, with initial ATS revenues anticipated in the second half of fiscal year 2025[96] - SkyWater's customer-funded CapEx model has resulted in expected total funding of approximately $322 million from 2020 to 2026[97] Market & Technology Focus - SkyWater is targeting a $9 billion thermal imaging market opportunity by 2027, leveraging its ThermaView platform[25] - The company is actively involved in enabling the quantum revolution, providing custom technology development and manufacturing for superconducting qubits and photonics qubits[36, 38, 143] - SkyWater is expanding its capabilities in advanced packaging, including fan-out wafer-level packaging and hybrid wafer bonding, to support AI processors and heterogeneous systems[95]

Core Insights - SkyWater Technology (SKYT) is set to acquire Fab-25 from Infineon Technologies, with the deal expected to close on June 30, 2025, which will enhance its position in U.S. semiconductor manufacturing and meet the rising demand for domestically sourced chips [1][3][8] Group 1: Acquisition Details - The acquisition of Fab-25 is backed by a four-year supply agreement exceeding $1 billion, anticipated to generate $300 million in incremental revenues for fiscal 2025 [2][8] - Fab-25 is a 200 mm CMOS facility that will expand SkyWater's foundry capabilities, supporting critical applications in automotive, industrial, and defense sectors [3][8] - The integration of Fab-25 aligns with national onshoring priorities, enhancing SkyWater's relevance in the evolving global supply chain [3][4] Group 2: Competitive Landscape - SkyWater faces competition from Tower Semiconductor, which specializes in analog and mixed-signal ICs and has a strategic partnership with Semtech to scale SiGe wafer production for AI and 5G applications [5] - GlobalFoundries is another competitor, offering scalable 200 mm and 300 mm wafer production, serving high-demand sectors like automotive and defense, and providing broader industry reach and advanced process diversity [6] Group 3: Financial Performance and Valuation - SkyWater's shares have declined by 34.3% year-to-date, contrasting with the Zacks Electronics – Semiconductors industry's return of 5.2% [7] - The company trades at a forward 12-month price-to-sales ratio of 1.28, significantly lower than the industry's average of 8.18, indicating potential value for investors [9] - The Zacks Consensus Estimate for SkyWater's 2025 loss is projected at 1 cent per share, unchanged over the past 30 days, while the company reported earnings of 6 cents per share in 2024 [10]

SkyWater Technology, Inc. (SKYT) closed at $9.07 in the latest trading session, marking a +2.49% move from the prior day. This move outpaced the S&P 500's daily gain of 0.96%. At the same time, the Dow added 0.89%, and the tech-heavy Nasdaq gained 0.94%. Coming into today, shares of the company had lost 1.67% in the past month. In that same time, the Computer and Technology sector gained 2.53%, while the S&P 500 gained 0.5%. Market participants will be closely following the financial results of SkyWater Tec ...

Core Insights - SkyWater Technology's Wafer Services revenues experienced a 25% year-over-year decline in Q1 FY25 due to decreased demand from automotive customers, but a strong sequential rebound of 70% to $7.5 million was driven by the launch of the ThermaView platform [2][9] - ThermaView, SkyWater's first internally developed product platform for thermal imaging, is already being deployed by two major U.S. defense contractors, indicating its significance in mission-critical applications [3][9] - The company anticipates that ThermaView will be a key growth driver for Wafer Services through FY25, addressing a projected $9 billion market opportunity by 2027 [4][5] Financial Performance - For Q2 FY25, SkyWater expects Wafer Services revenues to be between $5 million and $6 million, reflecting ongoing demand for ThermaView [4][9] - SkyWater's shares have declined by 40.6% year-to-date, contrasting with the Zacks Electronics – Semiconductors industry's return of 3.9% [8] - The current forward 12-month price-to-sales ratio for SkyWater is 1.17, significantly lower than the industry average of 8X, making it an attractive option for value investors [10] Earnings Estimates - The Zacks Consensus Estimate for SkyWater's 2025 loss is currently at 1 cent per share, which has narrowed by 85.7% over the past 60 days, indicating a year-over-year decline of 116.67% [11] - Earnings estimates for the upcoming quarters show a projected loss of $0.17 for the current quarter, a profit of $0.09 for the next quarter, and a loss of $0.01 for the current year [12] Competitive Landscape - SkyWater faces significant competition from GlobalFoundries, which offers a wide range of process technologies and serves diverse markets, holding advantages in scale and capacity [6] - Tower Semiconductor specializes in analog, RF, and MEMS technologies, targeting high-value niches and offering customizable solutions, which positions it as a strong competitor in complex analog projects [7]

Core Insights - SkyWater Technology (SKYT) and Marvell Technology (MRVL) are significant players in the semiconductor industry, with SKYT focusing on specialty foundry services and MRVL on custom silicon solutions for data centers and AI infrastructure [1][2] Summary of SKYT - SkyWater Technology has been enhancing its business through new product development and strong execution, particularly in the Wafer Services segment, which has seen increased customer interest in thermal imaging and diagnostics [3][5] - The company is transitioning from legacy programs to new technology platforms, with the ThermaView platform contributing to business growth and the planned acquisition of Fab 25 in Austin expected to increase capacity and support sectors like electric vehicles and medical devices [4][6] - In Q1 2025, SkyWater reported revenues of $61.3 million, a 13% year-over-year increase, with a gross margin of 24.2% and over $4 million in adjusted EBITDA [5] - Advanced computing, primarily from quantum projects, now constitutes 10% of total revenues, with partnerships aiding expansion in this area [6] - The Zacks Consensus Estimate for SKYT's 2025 loss is 1 cent per share, with revenues projected at $307.15 million, indicating a 10.26% year-over-year decline [7] Summary of MRVL - Marvell Technology is experiencing strong momentum in its data center business, driven by rising demand for AI applications and innovations in custom silicon programs [8][11] - The company has seen recovery in traditional segments, although automotive and industrial revenues declined by 12% sequentially, and consumer revenues dropped by 29% sequentially in fiscal Q1 2026 [10] - In fiscal Q1, Marvell reported revenues of $1.90 billion, a 63% year-over-year increase, with the data center segment contributing 76% of total revenues and a non-GAAP gross margin of 59.8% [11] - The custom silicon business is growing rapidly, particularly in AI, but operates at lower gross margins, which may impact overall profitability [12] - The Zacks Consensus Estimate for MRVL's fiscal 2026 earnings is $2.79 per share, with revenues expected to reach $8.21 billion, reflecting a 42.43% year-over-year growth [13] Price Performance and Valuation - In the past month, MRVL shares increased by 7.4%, while SKYT shares decreased by 5.8%, suggesting potential upside for SKYT [14] - MRVL's forward 12-month P/S ratio is 6.61X, significantly higher than SKYT's 1.17X, indicating that SkyWater is relatively undervalued [17] - SKYT's Value Score of B suggests it is an attractive option for value investors, compared to MRVL's Value Score of D [17] Investment Outlook - SkyWater presents a stronger investment case for 2025, driven by new product adoption, expanding quantum partnerships, and the upcoming Fab 25 acquisition [19] - While Marvell benefits from AI-driven growth, its lower-margin custom silicon and segment softness may hinder profitability, making SkyWater a more compelling choice for long-term investors focused on value [20]

Core Insights - SkyWater Technology (SKYT) shares have increased by 22.6% in the past month, outperforming the Zacks Computer and Technology sector and the S&P 500 index, which returned 7.6% and 4.9% respectively [1][2] Strategic Developments - The stock's performance is largely due to SkyWater's acquisition of Infineon's Fab 25, a 200 millimetre foundry in Austin, TX, which is expected to close mid-year and enhance domestic semiconductor capacity [2][3] - The acquisition is supported by a four-year, over $1 billion supply deal, which will immediately increase revenues and cash flow, diversify revenues, and strengthen the company's role in U.S. semiconductor onshoring [3][4] Product Launch and Revenue Growth - SkyWater launched ThermaView Solutions in January 2025, aimed at high-performance thermal imaging applications, which has already driven a 70% sequential increase in Wafer Services revenues to $7.5 million in Q1 2025 [7][8] - Over half of Wafer Services' revenues in Q1 2025 came from new products, marking a significant shift from 2024 when 90% of revenues were from legacy products [8][10] Quantum Computing Advancements - SkyWater's partnership with D-Wave has led to significant advancements in quantum computing, with D-Wave achieving quantum supremacy, validating SkyWater's role in U.S.-based quantum innovation [11][12] - Quantum computing has become the second-largest end market for SkyWater, with over 90% of advanced compute revenues tied to quantum programs [13] Competitive Positioning - SkyWater differentiates itself from competitors like Tower Semiconductor, GlobalFoundries, and ON Semiconductor by focusing on specialized, high-value chip production and holding a Department of Defense accreditation [14][15] - The company's TaaS model supports early design-for-manufacturability and quality-focused production, allowing for rapid innovation [16] Financial Outlook - The Zacks Consensus Estimate for SKYT's 2025 loss is currently at 1 cent per share, indicating a year-over-year decline of 116.67%, with revenues estimated at $307.15 million, a decline of 10.26% [17] - SKYT has beaten the Zacks Consensus Estimate for earnings in three of the last four quarters, with an average surprise of 203.9% [18] Valuation Metrics - SKYT trades at a forward 12-month P/S ratio of 1.28X, significantly lower than the industry average of 7.90X, making it an attractive option for value investors [19] Investment Consideration - SkyWater's unique position as a U.S.-based, DoD-accredited foundry, along with strong momentum in its Wafer Services segment and critical role in quantum computing, presents a compelling long-term investment opportunity [21][22]

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