Key Takeaways UMC's foundries in Taiwan, Singapore and Japan operated at healthy utilization rates in 2025. A focus on mature and specialty process nodes has helped UMC navigate chip industry volatility. Zacks expects UMC earnings to grow 11.32% next year after a projected 8.62% decline in 2025.In 2025, United Microelectronics Corporation (UMC) , part of the Zacks Electronics – Semiconductors industry, has steadily strengthened its position in the global semiconductor landscape, building on its reputation ...

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 - Qualcomm Incorporated (QCOM) has gained 28.2% in three months, underperforming the Electronics – Semiconductors industry's growth of 69.3% but outperforming the S&P 500 [1][8] - The company has underperformed its competitor Broadcom Inc. (AVGO), which surged 86.8%, while outperforming Intel Corporation (INTC), which gained 12.3% [2][8] Product Performance - Qualcomm is experiencing strong demand in the premium smartphone segment, particularly with the Snapdragon 8 Elite chipset, which features a peak CPU speed of 4.32 GHz and advanced graphics performance [3][4] - The Snapdragon 8 Elite is integrated into flagship smartphones from major manufacturers like Samsung, Xiaomi, and OnePlus, enhancing Qualcomm's market presence [4] - Qualcomm is also expanding its portfolio for the mid-range smartphone segment with the Snapdragon 7 Gen 4 chipsets, which have been adopted by brands like HONOR and VIVO [5] Revenue Growth - The company reported revenues of $6.93 billion in Q1 2025, reflecting a 12% year-over-year increase, with projected handset revenues reaching $27.6 billion in 2025, indicating an 11.3% year-over-year growth [5] - Qualcomm is focusing on developing advanced chipsets for AI PCs, with the Snapdragon X chip gaining popularity in the emerging market [6] Competitive Landscape - Qualcomm faces increasing competition from low-cost chip manufacturers like MediaTek and Rockchip in the mid-range smartphone segment [9] - Major clients like Apple and Samsung are moving towards in-house chip development, which poses a challenge to Qualcomm's market share [9][10] - Intel remains a strong competitor in the AI PC market, with several manufacturers opting for Intel AI chips, which could impact Qualcomm's AI PC chipset business [10] Market Exposure - A significant portion of Qualcomm's revenues comes from international markets, particularly China, which poses risks due to geopolitical tensions and trade relations [11] Earnings Estimates - Earnings estimates for 2025 have decreased by 0.17% to $11.71, and for 2026, they have decreased by 2.23% to $11.82, indicating bearish sentiments among investors [12] Valuation Metrics - Qualcomm's shares are trading at a price/earnings ratio of 13.77, which is lower than the industry average of 32.87 and the stock's historical mean of 17.22, suggesting a relatively cheaper valuation [15] Business Model Strengths - The strength of Qualcomm's business model, revenue diversification, and proactive market response are key growth drivers, supported by a strong focus on innovation and collaboration with OEMs [17]

Key Takeaways SKYT trades at a 1.39X forward P/S, far below the 8.76X industry average and key semiconductor peers. ThermaView drove a 70% QoQ jump in Wafer Services revenues, now over half from new product offerings. Fab 25 adds 400K wafer starts and $1B in contracts, enhancing SKYT's scale and U.S. foundry positioning.SkyWater Technology (SKYT) shares are currently cheap, as suggested by the Value Score of B. In terms of forward 12-month price/sales (P/S), SKYT is trading at 1.4X, which is significantly ...

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]

Marvell Technology, Inc. (MRVL) is scheduled to report first-quarter fiscal 2026 results after market close on May 29, 2025.Marvell Technology anticipates revenues of $1.875 billion (+/- 5%) for first-quarter fiscal 2026. The Zacks Consensus Estimate for MRVL’s fiscal first-quarter revenues is pegged at $1.88 billion, indicating year-over-year growth of 61.6%.For the fiscal first quarter, the company expects non-GAAP earnings of 61 cents per share (+/- 5 cents per share). The Zacks Consensus Estimate for MR ...

Industry Overview - The Zacks Electronics - Semiconductors industry is experiencing growth driven by the proliferation of AI, Generative AI, IoT, and industrial revolution 4.0, benefiting companies like Broadcom, Lam Research, and Impinj [1] - The industry is facing challenges such as macroeconomic factors, end-market volatility, inventory corrections, and geopolitical tensions, particularly tariffs affecting trade with China [1] Demand Drivers - Increasing demand for AI-supportive chips from hyperscalers is a significant growth driver, alongside the rising need for consumer electronic devices like smartphones and robotics [1] - The demand for advanced manufacturing processes and energy-efficient computing power is being fueled by the growing popularity of AI and the emergence of Gen AI and Agentic AI [3] - Smart devices require high processing power and low power consumption, which is beneficial for the semiconductor industry [4] Advanced Packaging and Manufacturing - The demand for advanced semiconductor packaging and test technologies is rising due to trends towards miniaturization and improved performance [5] - The complexity of semiconductor manufacturing processes is increasing as manufacturers aim to maximize yields at lower costs, driven by the adoption of cloud computing, IoT, and AI [6] Market Performance - The Zacks Electronics - Semiconductors industry ranks 85, placing it in the top 35% of over 250 Zacks industries, indicating bullish near-term prospects [7][8] - The industry's earnings estimates have increased by 3.5% since August 31, 2024, reflecting positive analyst sentiment [9] - Over the past year, the industry has outperformed the S&P 500 and the broader Zacks Computer and Technology sector, appreciating 17.7% compared to 10.9% for the S&P 500 [11] Valuation Metrics - The industry is currently trading at a forward 12-month price-to-earnings ratio of 28.75X, higher than the S&P 500's 21.49X and the sector's 26.45X [14] Company Highlights - Impinj, with a Zacks Rank 1, is benefiting from its strong position in the endpoint IC market and innovative product offerings, with a 7.5% increase in earnings estimates for 2025 [17][19] - Broadcom, ranked 2, is seeing strong demand for AI-related solutions and has maintained steady earnings estimates for fiscal 2025 [22][23] - Lam Research, also a Zacks Rank 2, is capitalizing on strengths in 3D DRAM and advanced packaging technologies, with a 4.2% increase in earnings estimates for fiscal 2026 [26][27]

Nova Ltd. (NVMI) shares have lost 27.9% in the past three months, underperforming the Zacks Electronics – Semiconductors industry’s return of 2.7%, and the Zacks Computer and Technology sector and the S&P 500 index’s decline of 1.6% and 1.3%, respectively. NVMI shares have also underperformed industry peers, including Applied Materials (AMAT) , Cirrus Logic (CRUS) and FormFactor (FORM) . In the past three months, shares of Applied Materials, Cirrus Logic and FormFactor have lost 1.9%, 2.5% and 7.8%, respect ...