Skyworks forecasts upbeat quarterly results on robust mobile chip demand

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(Reuters) -Skyworks Solutions forecast first-quarter revenue and profit above Wall Street estimates on Tuesday, signaling robust demand for its radio-frequency chips used in Apple’s latest 5G iPhones.

The rapid adoption of 5G smartphones and launch of AI-enabled phones has benefited Skyworks, which is a key provider of radio-frequency chips for 5G. It is also a major beneficiary of Apple’s annual iPhone launch.

Last month, Apple forecast holiday-quarter iPhone sales and overall revenue that surpassed Wall Street expectations, powered by orders for iPhone 17 models that the company is racing to fulfill amid continuing supply constraints.

“In mobile, underlying demand trends remain solid, supported by healthy sell-through and new product launches. Looking ahead, we expect rising AI-driven data traffic to drive greater radio-frequency complexity,” said CEO Phil Brace.

Growth in Skyworks’ broad markets segment, which supplies chips for automotive, industrial and Internet of Things (IoT) applications, is being driven by trends like WiFi 7 adoption, connected vehicles and AI-driven upgrades.

Last month, Skyworks announced a cash-and-stock offer to buy smaller rival Qorvo, creating a $22 billion radio-chip giant. The deal values Qorvo at $9.76 billion. The two companies are major suppliers to Apple and other smartphone firms, where their chips help to handle the radio signals that carry wireless data.

Skyworks forecast first-quarter revenue between $975 million and $1.03 billion, compared to analysts’ estimate of $858.3 million, according to data compiled by LSEG.

It expects adjusted profit of $1.40 per share for the quarter, ahead of the average estimate of 94 cents per share.

Skyworks’ revenue for the fourth quarter, ended October 3, came in at $1.10 billion, beating estimates of $978.2 million.

(Reporting by Juby Babu in Mexico City; Editing by Alan Barona)