Investing.com-- Skyworks Solutions Inc (NASDAQ:SWKS) received downgrades from Mizuho (NYSE:MFG) and Stifel analysts as they warned of significant headwinds stemming from its largest customer, Apple (NASDAQ:AAPL).
The concerns center around Skyworks losing a sizable portion of its radio-frequency (RF) module content in the upcoming iPhone 17, which is expected to weigh on revenue and profitability through fiscal 2026, analysts said in separate notes.
Both Mizuho and Stifel analysts reduced their price target to $62 from $105.
Mizuho analysts downgraded Skyworks to "Neutral", highlighting a 20-25% content loss in Apple’s next-generation smartphone as the tech giant moves to a dual-sourcing strategy, likely benefiting Broadcom Inc (NASDAQ:AVGO).
This shift could lead to a 15% revenue decline in late 2025 and early 2026, exacerbated by broader industry challenges such as slowing demand in China’s Android market and underutilized production capacity, Mizuho analysts said.
Mizuho also cited rising operating expenses and the departure of Skyworks’ long-time CEO as additional uncertainties. They see continued headwinds through at least the iPhone 18 launch in late 2026 and limited near-term catalysts.
Stifel similarly downgraded the stock to "Hold" from "Buy", citing the unexpected loss of single-source status for a key iPhone 17 component.
TStifel analysts noted that Skyworks had been awarded only a partial share of the module in two of the four upcoming iPhone models, which could materially impact fiscal 2025 and 2026 revenue.
Stifel also flagged underutilization of the company’s manufacturing facilities as a concern, leading to downward revisions in PT.
Both brokerages suggested a potential turnaround in fiscal 2027, contingent on Skyworks regaining content in future iPhone models, though competition and execution risks remain high.