The Raging Trade War Is Sabotaging Skyworks Solutions' 5G Catalyst
The U.S.-China trade war isn't cooling off, as the two countries have taken their fight a notch higher after the latest round of tariff impositions. This is bad news for companies such as Skyworks Solutions (NASDAQ: SWKS), whose financial performance took a hit in the last-reported quarter because of its deep ties with China's Huawei.
Skyworks investors were already warned that its reliance on Huawei for 12% of its total revenue would drag it down, and it wasn't surprising to see the chipmaker's top and bottom lines drop. But management tried putting on a brave face and said that the company's long-term prospects are still intact, focusing particularly on the opportunity in fifth-generation (5G) wireless networks.
But, will Skyworks be able to take advantage of the 5G rollout in the face of the intensifying trade war with China?
Source Fool.com
