Skyworks Solutions, Qorvo shares slip after Citi lowers ratings of chipmakers
Investing.com -- Shares in Skyworks Solutions (NASDAQ:SWKS) and Qorvo (NASDAQ:QRVO) slipped in early U.S. trading on Tuesday after analysts at Citi cut their rating of the smartphone chipmakers and major Apple (NASDAQ:AAPL) suppliers.
In a note to clients, the analysts downgraded their outlook for the semiconductor groups to "Sell" from "Neutral," citing increased risk to their Chinese operations following the release of Huawei's Mate 60 smartphone. They also lowered their calendar year 2024 estimates for earnings per share and slashed their price targets.
The Citi analysts noted that they believe the Huawei device will likely use domestic radio-frequency and connectivity components, eating into the two companies' China businesses.
Weakness in the Chinese handset market has already hit both of the firms' sales in the world's second-largest economy for over a year, Citi flagged.
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