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On Tuesday, Citi analysts announced the addition of two new 90-day catalyst watches for Skyworks Solutions (NASDAQ:SWKS) and Qorvo (NASDAQ:QRVO), driven by positive indicators in the Apple supply chain. According to Citi’s China Technology analyst Kyna Wong, there are data points suggesting that the Apple supply chain might experience better-than-expected results for the June and September quarters. This potential uptick is attributed to demand being pulled forward in response to tariffs. Apple, currently trading above its InvestingPro Fair Value, has demonstrated solid revenue growth of 4.91% over the last twelve months.
The current expectations from the Asia supply chain are for a stable year-over-year growth, with iPhone 17 build forecasts ranging between 80 to 95 million units. Historically, stocks within Apple’s supply chain have performed better than Apple’s own stock (NASDAQ:AAPL) from the time of the Worldwide Developers Conference (WWDC) through to the iPhone launch event in September. With a market capitalization of $3.01 trillion and an overall financial health score rated as GOOD by InvestingPro, Apple continues to maintain its position as a dominant player in the technology sector.
Skyworks Solutions and Qorvo, which are heavily reliant on Apple for their sales, contributing approximately 66% and 47% respectively, are anticipated to benefit from these developments. The catalyst watch suggests that there may be an upside for both companies’ stocks leading into their earnings reports and the anticipated launch of the iPhone 17. For deeper insights into Apple’s valuation metrics, including its P/E ratio of 31.27 and comprehensive financial analysis, check out the detailed Pro Research Report available on InvestingPro, along with 12+ additional ProTips.
Despite the positive short-term outlook for Skyworks Solutions and Qorvo, Citi maintains its long-term concerns regarding the increasing competition in the RF semiconductor market and the risks associated with concentration. This caution reflects the challenges that could impact the companies’ performance beyond the immediate boost from the iPhone supply chain dynamics.
In other recent news, Apple’s latest Worldwide Developers Conference (WWDC) has led to varied analyst reactions regarding the company’s future prospects. UBS maintained a Neutral rating with a $210 price target, expressing skepticism about the impact of Apple’s software updates on iPhone demand. Meanwhile, Raymond (NSE:RYMD) James reiterated an Outperform rating with a $230 target, highlighting positive consumer response to new Apple Intelligence features and potential growth in Services revenue. Evercore ISI also kept an Outperform rating with a $250 target, noting Apple’s incremental updates and focus on AI integration across its ecosystem. Wedbush analysts maintained their Outperform rating and a $270 price target, emphasizing Apple’s cautious but strategic approach to AI development. BofA Securities reaffirmed a Buy rating with a $235 price target, reflecting confidence in Apple’s strong market position and growth potential. These recent developments underscore Apple’s ongoing efforts to innovate and refine its software and AI capabilities, with analysts offering mixed views on the company’s future trajectory.
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