SWKS - Artificial Intelligence (AI) Is Lifting the Smartphone Market: 2 Beaten-Down Stocks to Buy Before They Go on a Bull Run
2024-04-20 03:15:00 ET
After delivering outstanding growth in 2023, semiconductor stocks have continued their impressive run this year as well, which is evident from the 12% gains clocked by the PHLX Semiconductor Sector index as of this writing. However, certain chip stocks have been left behind while the broader market has rallied impressively.
Shares of Skyworks Solutions (NASDAQ: SWKS) and Qorvo (NASDAQ: QRVO) , two chipmakers that are known for supplying chips for Apple , have underperformed the semiconductor sector in 2024. Skyworks stock is down nearly 11% so far this year, while Qorvo has fallen 2%.
A big reason behind their underperformance is the weak performance of the smartphone market over the past couple of years. Both companies get a nice chunk of their revenue from selling smartphone chips, which explains why their top lines have been shrinking since the beginning of 2022.
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Artificial Intelligence (AI) Is Lifting the Smartphone Market: 2 Beaten-Down Stocks to Buy Before They Go on a Bull Run