Skyworks Solutions is one of the few tech stocks that Cramer will recommend these days.
As a chipmaker for the wireless market, Skyworks is cashing in on the ramp up to third-generation networks, which will deliver data at broadband speeds. The company’s also a big player in the EDGE market – another high-speed network – selling semiconductors to Apple and Research in Motion.
Skyworks Solutions CEO and President David Aldrich told Cramer Wednesday that he expects to own 50% of the 3G market and 80% of RIMM’s BlackBerry EDGE business by the end of the year. The growth won’t stop there, though. Skyworks ships its products to all five of the top original equipment manufacturers in the wireless market, and the company’s making moves outside that market, into automotive, medical and energy management.
A diversified portfolio of business helps to ensure, Aldrich said, “that we have a broader company with more growth potential, more earnings potential.”
Skyworks continues to take market share, the CEO said, because the company succeeds at turning complicated 3G technology into a small chip that doesn’t deplete your phone’s battery life. And it does it at a lower cost to Skyworks customers.
“We like complication,” Aldrich said, “because we’re trying to simplify our customer’s life so they can focus on features and not worry about the semiconductor content that makes it work.”
Cramer’s call: Skyworks should “continue to deliver” – and he’s sticking with it.
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