Core Insights - Vulcan Value Partners reported positive results across all its investment strategies for Q4 2025, with the Large Cap Composite returning -1.5% in Q4 and 7.9% YTD, and the All-Cap Composite returning 1.3% in Q4 and 10.7% YTD, despite overvalued markets [1] Group 1: Investment Performance - The Small Cap Composite (Net) gained 3.2% in Q4 and 9.5% YTD, while the Focus Composite (Net) and Focus Plus Composite (Net) both returned 0.1% in Q4, with YTD returns of 7.1% and 6.2% respectively [1] - The firm improved its price-to-value ratios while prioritizing safety and long-term gains over short-term performance [1] Group 2: Market Context - The current market situation is compared to the late 1990s dot-com bubble, where high valuations led to a crash, and today's AI disruptions are seen as potentially mirroring that pattern [1] - Investors are at risk of overpaying for promising businesses, prompting the firm to adhere to its investment discipline [1] Group 3: Company Focus - Skyworks Solutions, Inc. - Vulcan Value Partners exited its holdings in Skyworks Solutions, Inc. from its Large Cap and All Cap Strategies during Q4 2025, with the stock trading between $47.93 and $93.33 over the past 52 weeks [2] - Skyworks Solutions, Inc. has a market capitalization of $8.946 billion, and its shares experienced a one-month return of -7.07% and a three-month loss of 19.41% [2] Group 4: Industry Insights - Skyworks Solutions, Inc. is a leading designer and manufacturer of semiconductors for wireless communications, with approximately two-thirds of its revenue coming from smartphones [3] - The growth in the semiconductor industry is driven by an increasing number of wireless devices and higher RF content per device, with demand for higher data throughput and smaller chips [3] - Vulcan Value Partners sold Skyworks to capitalize on more discounted opportunities but continues to monitor the business closely, especially in light of Skyworks' bid for Qorvo, which the firm still holds due to its more favorable valuation [3]

Core Insights - The article discusses the challenges faced by companies in managing excess inventory, particularly in the semiconductor industry, highlighting the financial burden of storage and capital costs associated with unsold materials [1] - It emphasizes the services provided by a company called "Chip Superman," which has successfully served 22,000 users and offers rapid inventory clearance solutions [2][10] - The article lists various semiconductor components available for sale at discounted prices, indicating a significant inventory of over 50 million chips valued at over 100 million [9] Group 1: Inventory Management - Companies are facing substantial costs due to excess inventory, with monthly storage and capital costs amounting to at least 5,000, leading to potential losses of 30,000 after six months [1] - There is a need for effective promotion strategies for unsold materials to mitigate financial losses [1] Group 2: Services Offered - "Chip Superman" has a robust operational capacity with a 1,600 square meter smart storage facility, housing over 1,000 different models and 100 brands of chips [9] - The company guarantees quality control (QC) for each component, ensuring reliability for customers [9] Group 3: Sales and Discounts - The article highlights a range of semiconductor components available for sale, including various models from brands like MICRON, SAMSUNG, and INFINEON, with quantities ranging from thousands to millions [5][6] - The company is actively promoting discounted sales to clear inventory, with transactions completed in as little as half a day [2][10]

Core Viewpoint - Skyworks Solutions, Inc. will host a conference call on February 3, 2026, to discuss its first quarter fiscal 2026 results and business outlook [1][10]. Group 1: Earnings Release and Conference Call Details - The earnings press release will be issued after the market closes on February 3, 2026, and will be available on GlobeNewswire and Skyworks' website [2]. - The conference call can be accessed through the investor relations section of Skyworks' website, with a playback available starting at 9 p.m. EST on the same day [3]. Group 2: Company Overview - Skyworks Solutions, Inc. specializes in high-performance analog and mixed-signal semiconductors, facilitating connections across various applications including aerospace, automotive, and wireless networking [4]. - The company operates globally with facilities in Asia, Europe, and North America and is a member of the S&P 500 index [5].

Group 1 - The core viewpoint of the article is that semiconductor revenue from AI applications is expected to grow significantly, from $220 billion in 2025 to over $550 billion by 2028, according to RBC Capital Markets [1] - Current market supply is tight, with enterprise order delivery cycles extended to 18 months, which clarifies the industry's outlook [1] - Infrastructure bottlenecks may delay some projects, but this could smooth out the spending cycle in the AI sector rather than being a negative factor [1] Group 2 - RBC Capital Markets has initiated coverage on several semiconductor companies, giving them an "outperform" rating, including Nvidia, Micron Technology, Marvell Technology, Arm, Astera Labs, ASML, Applied Materials, Lam Research, and Lattice Semiconductor [1] - For companies like Broadcom, AMD, Intel, KLA, SanDisk, Qualcomm, Skyworks, and Silicon Labs, RBC has assigned a "market perform" rating [2] Group 3 - High Bandwidth Memory (HBM) demand is expected to be a core growth driver, potentially reducing the cyclical volatility of the memory market [3] - AI workloads are shifting towards reinforcement learning and distributed inference, which require high memory performance [3] - The upcoming HBM4 iteration is anticipated to be beneficial, with average prices expected to increase by 30-50% [3] - The demand for high-capacity server memory (DIMM) and solid-state drives (NAND eSSD) is also driven by the explosion of generative AI [3] - Despite high memory prices potentially impacting demand in the PC and smartphone markets, the memory industry is expected to remain in a supply-demand imbalance until 2027 [3] - Capital expenditures in the wafer fabrication equipment (WFE) sector are projected to maintain strong growth over the next two years [3] - Technological trends such as backside power delivery, advanced packaging, and three-dimensional structures are expected to drive at least high single-digit growth in the wafer fabrication equipment market over the next two years [3]

Summary of Key Points from J.P. Morgan's Semiconductor Industry Conference Call Industry Overview - The semiconductor industry is experiencing a strong demand driven by AI spending and data center build-outs, with companies like NVIDIA and Marvell seeing significant visibility and demand growth [1][5] - Concerns about a potential "AI bubble" are present, but companies report no signs of deceleration in customer activity, with many already planning for deployments in 2027 [1][5] Company-Specific Insights NVIDIA Corporation - NVIDIA is deeply engaged with customers for CY27 deployments, indicating a "tremendous" demand curve ahead [9] - The company has added to its previously announced backlog of over $500 billion, with expectations of significant revenue from data center operations [9] - Supply chain readiness for CY26 is confirmed, with confidence in managing the transition to new systems [9] - NVIDIA is focusing on physical AI opportunities, particularly in automotive and other industry verticals [9] - A 90% attach rate for networking products in data centers indicates strong integration of NVIDIA's offerings [9] Marvell Technology Inc. - Marvell's short-term bookings are described as "on fire," with expectations of 25% growth in the datacenter business for CY26 and 40% for CY27 [12] - AI custom ASIC revenues are projected to double to $3.6 billion in CY27, driven by strong demand from major customers [12] - The company is well-positioned in networking products, with significant growth expected in optical networking and switching [12] Analog Devices (ADI) - ADI is experiencing a cyclical recovery, particularly in industrial and communications segments, with a 50% year-over-year growth in the datacenter segment [15] - The company anticipates a return to normalized consumption levels in 2026, with strong momentum in automotive and consumer electronics [15] Micron Technology (MU) - Micron has a $10 billion design win pipeline expected to unfold over the next 4-5 years, with strong demand for DRAM and NAND [21] - The company expects at least 20% growth in bit shipments for both DRAM and NAND in CY26, despite supply constraints [21][23] - Pricing for DRAM is forecasted to increase by nearly 60% year-over-year in CY26 due to ongoing supply-demand tightness [23] Synaptics Inc. - Synaptics is focusing on context window memory management as a growing demand vector for NAND, driven by AI applications [24] - The company expects physical AI and robotics to become significant demand drivers for memory in the future [24] Silicon Laboratories Inc. (SLAB) - SLAB is seeing strong revenue growth from electronic shelf labels and smart metering, with expectations of continued momentum into 2026 [18] - The continuous glucose monitoring business is also expected to contribute significantly to revenue growth [18] Market Trends - The overall tone in the memory market is bullish, with improving demand for DRAM and NAND as AI applications increase memory requirements [1][5] - Companies are actively working on new product introductions and demos to capture opportunities in physical AI and edge AI applications [1][5] Conclusion - The semiconductor industry is poised for strong growth driven by AI and data center demands, with key players like NVIDIA, Marvell, and Micron leading the charge. The cyclical recovery in end markets and the focus on innovative applications in AI and edge computing are expected to sustain momentum through 2026 and beyond [1][5][12][21]

Core Insights - Skyworks Solutions (SWKS) shares have decreased by 32.8% over the past year, underperforming the Zacks Computer & Technology sector, which returned 26.3%. The company faces challenges from a tough macroeconomic environment, ongoing inventory digestion in certain markets, and tariff uncertainties. However, an expanding product portfolio is expected to enhance the company's future prospects [1] Product Innovations - At CES 2026, Skyworks launched the SKY66424-11, the industry's first highly integrated Wi-SUN/LoRaWAN RF front-end module designed for smart home and smart city applications. This module features advanced SAW or acoustic filtering, amplification, and switching, which reduces loss in a compact design while improving performance and connectivity for next-generation infrastructure [2] - The company is expanding its portfolio of automotive-grade solutions, including V2X Front-end Modules and Notch Filters, as well as the SKY5A2110, a GNSS L1 + L5 Dual-Frequency Automotive LNA FEM aimed at next-generation GNSS receiver applications [3] Market Demand - Skyworks is experiencing strong demand in both Mobile and Broad Markets. The Mobile Markets are driven by significant customer demand and new AI-driven Android products, while the Broad Markets are growing due to advancements in edge IoT, automotive, and infrastructure, supported by the adoption of WiFi 7 and connected vehicles [4] Company Positioning - Skyworks offers a comprehensive portfolio of radio and analog solutions, covering everything from transceivers to antennas, along with all necessary manufacturing process technologies. The company is a leader in passive devices and advanced integration, holding approximately 5000 patents and intellectual property [5] Financial Outlook - The Zacks Consensus Estimate for first-quarter fiscal 2026 net sales is $998.1 million, reflecting a year-over-year decrease of 6.6%. The earnings estimate for the same period is $1.41 per share, unchanged over the past 30 days, indicating a year-over-year decrease of 11.9% [6] - For fiscal 2026, the net sales estimate is $3.63 billion, representing a year-over-year decrease of 11.2%. The earnings estimate for fiscal 2026 is $4.46 per share, also unchanged over the past 30 days, indicating a year-over-year decrease of 24.8% [7] Stock Performance - Skyworks currently holds a Zacks Rank 3 (Hold). In comparison, top-ranked stocks in the sector include Micron Technology (MU), Ciena (CIEN), and NVIDIA (NVDA), each with a Zacks Rank 1 (Strong Buy) [8] - Long-term earnings growth rates for Micron Technology, Ciena, and NVIDIA are projected at 52.06%, 41.75%, and 46.31%, respectively. Over the past year, shares of these companies have surged by 241.6%, 215.3%, and 35% [9]

Core Viewpoint - The article revisits a smaller position in the portfolio, maintaining a buy rating and emphasizing a long-term investment horizon of 5-10 years, focusing on a mix of growth, value, and dividend-paying stocks [1]. Group 1 - The company has a beneficial long position in the shares of SWKS, indicating confidence in the stock's performance through ownership, options, or other derivatives [2]. - The investment strategy is characterized by simplicity, with a preference for value stocks, while also engaging in options trading occasionally [1]. Group 2 - The article expresses personal opinions and does not involve compensation from any company mentioned, ensuring an unbiased perspective [2]. - There is a clear distinction that past performance does not guarantee future results, highlighting the importance of individual investor suitability [3].

Core Insights - The information technology sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1] Group 1: Oversold Stocks - Apple Inc (NASDAQ:AAPL) has an RSI value of 25.5, with shares closing at $260.35 after a 6% decline over the past month and a 52-week low of $169.21 [7] - Hewlett Packard Enterprise Co (NYSE:HPE) has an RSI value of 28, with shares closing at $22.43 after a 5.7% decline over the past five days and a 52-week low of $11.96 [7] - Skyworks Solutions Inc (NASDAQ:SWKS) has an RSI value of 22.2, with shares closing at $59.82 after a 14% decline over the past month and a 52-week low of $47.93 [7]

Core Insights - The information technology sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1] Group 1: Oversold Stocks - Apple Inc (NASDAQ:AAPL) has an RSI value of 25.5, with shares closing at $260.35 after a 6% decline over the past month [7] - Hewlett Packard Enterprise Co (NYSE:HPE) has an RSI value of 28, with shares closing at $22.43 after a 6% drop in the last five days [7] - Skyworks Solutions Inc (NASDAQ:SWKS) has an RSI value of 22.2, with shares closing at $59.82 after a 14% decline over the past month [7]

Company Overview - Skyworks Solutions, Inc. is based in Irvine, California and was founded in 1962, specializing in analog and mixed-signal semiconductor products and solutions, with a market cap of $9.7 billion [1] Earnings Expectations - The company is expected to release its Q1 2026 earnings soon, with analysts predicting a profit of $1.06 per share on a diluted basis, which represents a 19.1% decrease from $1.31 per share in the same quarter last year [2] - For the current fiscal year, analysts anticipate an EPS of $3.03, down 34% from $4.59 in fiscal 2025, but expect an increase of approximately 18.5% year over year to $3.59 in fiscal 2026 [3] Stock Performance - Over the past 52 weeks, shares of Skyworks Solutions have declined by 35.4%, underperforming the S&P 500 Index's increase of 17.1% and the State Street Technology Select Sector SPDR ETF's return of 25.3% [4] - Despite the underperformance, on November 4, the stock surged more than 2% following the release of better-than-expected Q4 2025 results, with revenue growing 7.3% year over year to $1.1 billion and adjusted EPS for the quarter at $1.76, surpassing Wall Street expectations [5] Analyst Ratings - The consensus opinion among analysts on Skyworks Solutions is neutral, with a "Hold" rating overall; of the 24 analysts covering the stock, four recommend a "Strong Buy," 19 recommend a "Hold," and one suggests a "Moderate Sell" [6] - The average analyst price target for the stock is $84, indicating a potential upside of 40.4% from current levels [6]