Assessing SkyWater Technology (SKYT) Valuation After Earnings Swing To Profit And Trusted Foundry Expansion
Publish Date: 2026-03-04 07:51:00
Source Domain: simplywall.st
SkyWater Technology (SKYT) has drawn fresh attention after reporting fourth quarter and full year 2025 results, with quarterly sales of US$171.04 million and a full year swing to net income of US$118.92 million.
See our latest analysis for SkyWater Technology.
The latest earnings update has come alongside a sharp shift in sentiment, with a 90 day share price return of 63.11% and a 1 year total shareholder return of 245.89%. This suggests momentum has built quickly despite a recent 5.72% 30 day share price pullback and a modest 1 day dip, as investors react to SkyWater Technology’s trusted foundry positioning and renewed attention from both bulls and more cautious analysts.
If this earnings report has you looking beyond a single semiconductor name, it could be a good moment to scan 34 AI infrastructure stocks as another way to spot potential beneficiaries of demand for advanced computing capacity.
With the shares up very strongly over the past year, trading at US$29.85 and sitting below a US$35 analyst target, the key question now is whether SkyWater is still mispriced or if the market is already factoring in future growth.
Most Popular Narrative: 14.7% Undervalued
At a last close of $29.85 versus a narrative fair value of $35.00, the widely followed thesis leans on capacity expansion and higher long term margins.
The recent acquisition of Fab 25, backed by a multi-year $1b supply agreement with Infineon, quadruples domestic 200mm foundry capacity and creates a platform to address rising customer demand for secure, U.S.-based chip supply, an opportunity amplified by ongoing government and private sector shifts prioritizing supply chain resilience, which is likely to drive top line revenue growth and increase revenue visibility.
Read the complete narrative.
Curious what sits behind that $35 figure? Revenue ramps, margin rebuild, and a future earnings multiple all play a part. See how those pieces fit together.
Result: Fair Value of $35 (UNDERVALUED)
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