For nearly as long as investors have known a company called Skyworks Solutions (NASDAQ: SWKS) existed, it's also been known that the semiconductor company has enjoyed a wildly profitable run as an Apple (NASDAQ: AAPL) supplier. As an integrated designer and manufacturer of connectivity chips, Skyworks helped power mobile network capabilities for the iPhone, iPad, Apple Watch, and more. Despite years of work to diversify, though, Apple still accounted for a whopping 58% of Skyworks' total revenue in the recently concluded 2022 fiscal year.

Skyworks recently revealed that one of its newer markets is electric vehicles (EVs) and other connected cars. The company expects solid growth from this segment in the coming years, though a recession risk looms large in 2023. Is Skyworks stock a buy for the new year? 

There are a number of reasons Skyworks Solutions should be interested in diversifying away from Apple. Though a supplier contract is incredibly lucrative, Apple already designs some of the most critical chips in its products, like the M-series processors for the MacBooks. Apple has also been working on its own 5G modem chips for use in the iPhone as it tries to cut ties with Qualcomm.

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Source Fool.com