Skyworks Solutions, Inc. (SWKS), valued at a market cap of $10.9 billion, is a top semiconductor company specializing in analog and mixed-signal solutions that power wireless connectivity across various industries. The Irvine, California-based company designs, develops and manufactures high-performance radio frequency (RF) and semiconductor solutions for mobile, automotive, aerospace, IoT, and networking applications. 

Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Skyworks Solutions fits this criterion perfectly. Skyworks plays a crucial role in enabling 5G, Wi-Fi, and other advanced communication technologies, catering to major clients, including smartphone manufacturers and telecom infrastructure providers. While the company benefits from strong demand for wireless connectivity, it faces challenges from cyclical market fluctuations and competition in the semiconductor space.

But it’s not all sunshine and rainbows for SWKS. Its shares have dropped 45.1% from their 52-week high of $120.86, reached on July 16. Shares of this chipmaker have declined 26.5% over the past three months, compared to the broader Nasdaq Composite’s ($NASX) fall of 9.7% over the same time frame.

SWKS stock has dipped 32.9% over the past six months, lagging behind $NASX’s 1.7% rise. Moreover, shares of SWKS have dipped 38.6% over the past 52 weeks, compared to the 8.6% return of the $NASX over the same time frame.

SWKS has been trading below its 50-day moving average since the end of January and also stayed under its 200-day moving average since early September, indicating a bearish trend.

Skyworks Solutions' stock plunged 24.7% after its Q1 earnings release on Feb. 5. The company posted $1.07 billion in revenue, meeting analyst expectations but marking an 11.1% decline from the prior year. Adjusted EPS of $1.60 slightly beat the consensus estimate of $1.57. For the current quarter, Skyworks projects revenue between $935 million and $965 million, with non-GAAP EPS of $1.20 at the midpoint. 

Nevertheless, SWKS’ top rival, Qorvo, Inc. (QRVO), is in the same boat, dropping 35.7% over the past 52 weeks and a 28.9% dip over the past six months.

Due to SWKS’ underperformance, analysts remain cautious about its prospects. The stock has a consensus rating of “Hold” from the 26 analysts covering it, and the mean price target of $74.94 implies an upside potential of 13% from the current market prices.