Skyworks surge leads mixed chip sector ahead of Microsoft AI event
Michael Vi

Skyworks Solutions (NASDAQ:SWKS) shares surged more than 8% in mid-day trading on Tuesday after the semiconductor company reported mixed first-quarter results and guidance, but announced a $2B buyback program, signaling optimism in its own stock.
Skyworks (SWKS) earned an adjusted $2.59 per share on $1.33B in revenue, compared to estimates of $2.60 per share on $1.32B in revenue. It generated a record $773.4M in operating cash flow during the period.
For the second-quarter, Skyworks (SWKS), which is believed to get between 55% and 60% of its revenue from Apple (AAPL), expects to generated sales between $1.125B and $1.175B, below the $1.2B consensus. It also expects to earn $2.02 per share, below the consensus of $2.23 per share.
The new $2B buyback succeeds the previous buyback program that approved by Skyworks' (SWKS) board of directors in 2021.
Skyworks (SWKS) competitors Qorvo (QRVO) and Cirrus Logic (CRUS) rose 2.4% and 2%, respectively.
Alpha and Omega Semiconductor (NASDAQ:AOSL) shares plunged 13.5% after the company reported weaker-than-expected results for the second-quarter, due in large part to its high exposure to consumer electronics.
On an adjusted basis, Alpha and Omega Semiconductor (AOSL) earned 67 cents per share on $188.8M in revenue, well below the estimates of 88 cents per share and $196.73M in revenue.
For the third-quarter, Alpha and Omega Semiconductor (AOSL) expects revenue to be between $125M and $135M. Analysts expect revenue to be $193.77M.
Rambus (NASDAQ:RMBS) shares fell 5.3% after the company issued fourth-quarter results and gave first-quarter guidance.
Nvidia (NVDA) gained more than 2% ahead of Microsoft's (NASDAQ:MSFT) artificial intelligence event, where the tech giant is expected to talk more about its partnership with OpenAI, which some analysts will believe will start an "AI arms race."
AMD (AMD) and Intel (INTC), which both compete with Nvidia (NVDA) in the GPU space, both fell fractionally ahead of the event, scheduled for 1 p.m. EST.
Most other chip stocks saw fractional gains and losses, including Qualcomm (QCOM), NXP Semiconductors (NXPI), Micron Technology (MU) and Broadcom (AVGO).
Conversely, Texas Instruments (TXN) saw fractional losses.
Skyworks Solutions (SWKS) was recently listed among Goldman Sachs' top stocks to benefit from China's reopening.