I've been a bull on the sector, mostly being behind Skyworks Solutions (SWKS), Qualcomm, Research In Motion (RIMM), Apple (iPhone) and a bunch of little guys like ON Semiconductor (ONNN) and Starent (STAR), but even I am taken aback by how strong this rally is

As the product cycle revs up, it carries with it all the companies that make parts for the iPhone or BlackBerry or Pre, firms like Starent Networks (STAR), Skyworks Solutions (SWKS), Texas Insturments (TXN), RF Micro Devices (RFMD), Sandisk (SNDK) and the other chipmakers.

As for Skyworks (SWKS), Cramer said it's "going to keep growing." Action Alerts PLUS name Qualcomm (QCOM) is the "guts of all the 3G and 4G," he said.
(Cramer's "Stop Trading!" 6-9-09)

You can buy Skyworks below where it reported, even as its business is on fire. There I think the lid is all Apple (AAPL) saying it will develop its own chips, and it is a big customer of Skyworks. I simply do not believe that Skyworks is going to lose that business, as it is the lowest-margin part of a cell phone, and there is no reason to raise the cost of products that simply are better to buy than develop.

China play-high demand for cell phone materials SWKS provides

"Skyworks' materials go into all cell phones and the company can't pump out the stuff fast enough." ("Tech Tops the China Boost," 5-4-09)

Market Perform - Price 8.51 on March 24
by Sandler O'Neill

We are downgrading Skyworks [a maker of high-performance analog and mixed-signal semiconductors for mobile devices] to Market Perform from Strong Buy based on: customer weakness...end-market weakness... and limited operating leverage. SKWS has posted consistently strong results in recent quarters, significantly outperforming peers. [But we are] concerned that pressure on top-line growth will limit margin leverage in the near-term...We believe Skyworks is fairly valued at current levels...approximately 16 times our [fiscal year] '10 [generally accepted accounting principles] earnings-per-share estimate. We are maintaining our FY09 and FY10 GAAP EPS estimates of 43 cents and 49 cents, respectively. Market cap: $1.4 billion.

That's easily extrapolated to just about every semi and handheld business from Research In Motion (RIMM) to Analog Devices (ADI) to Apple (AAPL) and Skyworks Solutions (SWKS).

growth potential

They have the future in there hands with building the chips or the I phone type cell phones.

jim cramer