SkyWater(SKYT) ZACKS·2025-01-13 17:50Core Viewpoint - SkyWater Technology (SKYT) has demonstrated significant stock performance, with a 50.9% increase over the past six months, outperforming both the Zacks Electronics - Semiconductors industry and the Zacks Computer & Technology sector [1] Group 1: Stock Performance - SKYT shares have gained 30.9% in the last six months, while competitors like Cirrus Logic (CRUS) have seen a decline of 27.7% [1] - The stock's performance has raised questions among investors regarding its future potential and whether to hold or sell [2] Group 2: Strategic Partnerships - SkyWater is enhancing its commercial wafer services business through long-term partnerships, which are crucial for growth in advanced computing and thermal imaging platforms [3] - A collaboration with Quantum-Si Incorporated (QSI) aims to develop the Proteus platform for advanced protein sequencing, combining biotechnology expertise with manufacturing capabilities [4][5] - The partnership with Multibeam Corp. introduces a new Multicolumn E-Beam Lithography (MEBL) system, providing innovative production capabilities for various applications [6][7] Group 3: Long-Term Prospects - SkyWater's focus on advanced packaging and specialty semiconductor solutions aligns with high-growth markets such as AI, automotive, and aerospace [8] - Expected tooling revenues of 50 million in 2025 could enhance long-term performance, especially as the company transitions ATS customers into production [9] Group 4: Near-Term Challenges - SkyWater faces challenges, including a 9% sequential decline in ATS revenues due to funding delays in aerospace and defense programs [10] - Analysts project a revenue decline of 4.5% for 2025, with expected revenues of $325.6 million and a projected loss of 10 cents per share [10][11] - Macroeconomic uncertainties and increasing competition pose risks to short-term growth, and the company's valuation is currently stretched, indicated by a Zacks Value Style Score of D [11]