Topic: How To Invest

Could I get your view on SWKS, or Skyworks? Is it closely dependent on Apple or does it have a more diversified business? Thanks.

Article Excerpt

Skyworks Solutions Inc., $77.10, symbol SWKS on Nasdaq (Shares outstanding: 191.7 million; Market cap: $14.8 billion; www.skyworksinc.com), makes a variety of chips and other electronic components for cellphones, tablet computers and other wireless devices. Foxconn—the maker of Apple’s iPhone and iPad—accounts for over 40% of Skyworks’ sales. Skyworks is also developing chips for other applications beyond mobile devices. They include smart meters that help electrical utilities cut fraud and make their grids more efficient. The company continues to benefit from the growing number of people who use mobile devices, such as smartphones, to communicate and access the Internet. Another growth area for Skyworks is the “Internet of Things.” By the year 2020, over 30 billion devices—from home thermostats to appliances—will be connected to the Internet. In October 2015, Skyworks agreed to buy chipmaker PMC-Sierra (symbol PMCS on Nasdaq) for $2.0 billion. However, PMC-Sierra accepted a higher offer from another firm. As a result, Skyworks received an $88.5 million break-up fee. If you exclude this…