AI Growth Presents Opportunities for Chipmakers, Though Valuations Vary
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Nvidia stock has surged over 200% in the past year due to high demand for its graphics cards used for AI training. However, its valuation now looks expensive.
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Chipmaker Skyworks Solutions trades at a much cheaper valuation but faces near-term revenue headwinds due to reliance on Apple.
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Generative AI smartphone demand is expected to boom, potentially benefitting Apple and suppliers like Skyworks.
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Analysts forecast Skyworks’ revenue and earnings to rebound starting in 2025 due to this AI opportunity.
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Skyworks' stock could surge 87% to $189 in coming years if earnings estimates are achieved, presenting a cheaper way to invest in AI growth.