What happened?
Shares of wireless chips maker Skyworks Solutions (NASDAQ: SWKS) jumped 5.6% in the afternoon session after specialized cloud provider CoreWeave lifted its annual sales forecast, alleviating concerns over cooling artificial intelligence hardware demand.
CoreWeave said in its quarterly press release that third-quarter revenue surged 168% year-over-year to $3.66 billion, while its order backlog expanded to $132.5 billion. The company raised its 2026 revenue outlook to between $13.0 billion and $13.3 billion, ahead of the $12.9 billion consensus compiled by Reuters, and lifted capital expenditure plans to between $37 billion and $39 billion. The update alleviated credit market fears that debt-fueled data center buildouts would stall. In research cited by CNBC, JPMorgan credit analysts noted that expanding operating cash flow and a targeted inflection to adjusted profitability in 2028 resolve immediate funding overhangs.
With CoreWeave utilizing customer prepayments rather than new debt to fund expansion, hardware delivery schedules remain intact. For chipmakers, cloud capital spending directly underpins forward silicon demand. When infrastructure operators demonstrate that contracted leasing demand can fund physical deployment, it protects order books and pricing power across advanced processor and memory suppliers.
After the initial pop, the shares cooled down to $86.76, up 4.9% from the previous close.
Is now the time to buy Skyworks Solutions? Access our full analysis report here, it’s free.
What is the market telling us
Skyworks Solutions’s shares are very volatile and have had 29 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock dropped 7.9% on the news that the company reported third-quarter results and issued weak fourth-quarter guidance, citing Android market softness and merger integration factors.
According to a company press release, Skyworks reported third-quarter revenue of $1.05 billion and adjusted earnings of $1.28 per share. For the fourth quarter, the chipmaker guided adjusted earnings of $1.25 per share on revenue of $1.85 billion at the midpoint, alongside an estimated 7% sequential revenue decrease from combined September revenue. Both guidance figures fell short of Wall Street estimates, which called for $1.99 billion in revenue and $1.57 per share in adjusted profit. The anticipated revenue decline stemmed from softer demand in the Android market as well as integration factors following its combination with Qorvo.
Skyworks Solutions is up 34.7% since the beginning of the year, and at $86.76 per share, it is trading close to its 52-week high of $91.45 from September 2026. Despite the year-to-date gain, investors who bought $1,000 worth of Skyworks Solutions’s shares 5 years ago would now be looking at only $535.59.
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.