Skyworks Solutions (NASDAQ:SWKS) isn’t exactly a sexy stock if you read the generic company description. It makes all manners of detectors, diodes and switches for electronics — and unless you have an electrical engineering degree, you probably won’t have a lot of interest in the product specs.
But if you’re an investor, you should be very interested in the fact that Skyworks provides some of the parts for the iPhone. As a result, the small-cap company has seen revenue surge almost 80% in the past two years.
Shares took a dive in late 2011 on fears that Skyworks would not be a supplier for the highly anticipated iPhone 5, but shares quickly have come roaring back — tacking on 80% in about three months.
There is a chance Skyworks could indeed miss out on juicy iPhone 5 contracts, so investors should beware. But SWKS also supplies other major smartphone manufacturers and has big growth potential on that front to mitigate the downside.
And if it lands both a big iPhone sales deal as well as growing contracts from other firms? Well, then the sky is the limit for SWKS.