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SkyWater Soars 23% in a Month: Should You Buy the Stock or Wait?
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Key Takeaways
SKYT surged 22.6% in a month, outpacing sector and industry gains on strong strategic developments.
Revenues are being driven by the Fab 25 acquisition and ThermaView product launch.
SKYT's TaaS edge and quantum advancements position it for long-term growth.
SkyWater Technology (SKYT - Free Report) shares have jumped 22.6% in the past month, outperforming the Zacks Computer and Technology sector and the S&P 500 index’s return of 7.6% and 4.9%, respectively. The stock has also outperformed the Zacks Electronics – Semiconductors industry’s growth of 15.9% in the same time frame.
The stock’s outperformance can be attributed to SkyWater’s acquisition of Infineon’s flagship 200 millimetre foundry, Fab 25 in Austin, TX, that is on track for a mid-year closing. This is a key strategic step for the company to enhance domestic semiconductor capacity, as Fab 25 is one of the most advanced 200 millimetre CMOS fabs in the Western Hemisphere.
Backed by a four-year, $1 billion-plus supply deal, the Fab 25 acquisition will immediately boost revenues and cash flow for the company. It will also help scale the company’s TaaS model to more customers, diversify its revenues and strengthen its role in U.S. semiconductor onshoring.
However, the recent share price rally only scratches the surface. This stock offers a compelling entry point for investors in 2025, backed by strong execution and a clear long-term growth trajectory. Let’s dive into the key drivers fuelling its momentum.
SKYT's One Month Price Performance
Image Source: Zacks Investment Research
SKYT’s Launch of ThermaView Drives Growth
SkyWater launched ThermaView Solutions in January 2025 to support high-performance thermal imaging applications. Built on a dedicated 90 nanometre CMOS and MEMS platform, ThermaView aims to strengthen domestic sourcing of thermal sensors and reduce dependence on offshore supply chains.
ThermaView had an immediate impact, becoming a key driver of Wafer Services growth in the first quarter of 2025. Wafer Services revenues surged 70% sequentially, reaching $7.5 million, led by strong demand from two leading defense prime customers. This marked a significant shift from 2024, when 90% of Wafer Services’ revenues came from legacy products. In the first quarter, over half of Wafer Services’ revenues came from new products, with ThermaView playing the leading role.
The company expects new products like ThermaView and recent ATS-to-Wafer Services conversions to fuel most of Wafer Services’ growth throughout 2025, supporting innovation-led expansion at the Minnesota fab and increasing its long-term revenue contribution.
SKYT Advances in Quantum Computing
In the first quarter, SkyWater's quantum computing partner D-Wave achieved a major breakthrough, demonstrating quantum supremacy and simulation, a milestone proving that quantum systems can outperform classical computers on targeted problems. This announcement further validates SKYT’s role as a critical enabler of U.S.-based quantum innovation.
SkyWater has supported D-Wave since 2013 as a superconducting process flow developer, helping co-create custom superconducting qubits. D-Wave now leads the industry in quantum hardware and cloud services, including a partnership with Amazon Web Services to offer quantum computing on the cloud.
Quantum computing is part of SkyWater’s Advanced Compute segment, which became the company’s second-largest end market in 2024, after aerospace and defense. Notably, over 90% of advanced compute revenues last year were tied to quantum programs with D-Wave and Si-Quantum. SkyWater’s TaaS model and secure U.S. manufacturing give it a unique position in this field, helping translate lab-scale breakthroughs into scalable, production-ready solutions through its work in superconducting, photonic and other qubit-enabling technologies.
SKYT’s Competition and How It Stays Ahead
SkyWater competes with major players, such as Tower Semiconductor , GlobalFoundries (GFS - Free Report) , and ON Semiconductor (ON - Free Report) . Tower Semiconductor focuses on producing analog integrated circuits (IC) for semiconductor firms, while GlobalFoundries manufactures ICs on wafers for industries, including automotive and aerospace. ON Semiconductor delivers semiconductor solutions tailored to automotive and industrial applications. Shares of Tower Semiconductor, GlobalFoundries and ON Semiconductor have risen 10.3%, 0.1% and 10.8%, respectively, in the past month.
SkyWater differentiates itself from larger competitors by concentrating on specialized, high-value chip production instead of high-volume, mass-market manufacturing. Its status as a Department of Defense-accredited trusted foundry also gives it access to exclusive government contracts and defense programs that are unavailable to non-accredited competitors.
Additionally, SkyWater sets itself apart from rivals by offering a uniquely differentiated ATS model. Unlike traditional foundries focused on mass production or labs that lack manufacturing scale, SkyWater's TaaS approach supports early design-for-manufacturability and quality-focused production, enabling customers to accelerate innovation from concept to market with unmatched agility and support.
SKYT’s Earnings Estimate Revisions Show a Positive Trend
The Zacks Consensus Estimate for SKYT’s 2025 loss is currently pegged at 1 cent per share, which has narrowed by 85.71% over the past 30 days. The estimate suggests a year-over-year decline of 116.67%. The consensus mark for revenues is pegged at $307.15 million, indicating a year-over-year decline of 10.26%.
SKYT beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, with the average surprise being 203.9%.
From a valuation perspective, SKYT currently trades at a forward 12-month P/S ratio of 1.28X, which is at a significant discount compared to the Zacks Electronics – Semiconductors industry average of 7.90X. This makes this stock a great pick for a value investor. A value score of B further reinforces an attractive valuation for SKYT at this moment.
SKYT's P/S F12M Ratio
Image Source: Zacks Investment Research
Here’s Why You Should Buy SKYT Stock Now
Investors should consider SkyWater Technology for its unique position as a U.S.-based, DoD-accredited pure-play foundry, enabling access to exclusive defense and aerospace programs. SkyWater’s Wafer Services segment has been seeing strong momentum, fueled by the successful launch of its ThermaView Solutions, with new products playing a significant role in driving growth and shifting the revenue mix beyond legacy products. SkyWater also plays a critical role in the quantum computing ecosystem, partnering with leaders like D-Wave and supporting domestic manufacturing through its TaaS model. With strategic moves like the Fab 25 acquisition, SKYT offers a compelling long-term investment opportunity.
SKYT currently sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks proprietary methodology. You can see the complete list of today’s Zacks #1 Rank stocks here.
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SkyWater Soars 23% in a Month: Should You Buy the Stock or Wait?
Key Takeaways
SkyWater Technology (SKYT - Free Report) shares have jumped 22.6% in the past month, outperforming the Zacks Computer and Technology sector and the S&P 500 index’s return of 7.6% and 4.9%, respectively. The stock has also outperformed the Zacks Electronics – Semiconductors industry’s growth of 15.9% in the same time frame.
The stock’s outperformance can be attributed to SkyWater’s acquisition of Infineon’s flagship 200 millimetre foundry, Fab 25 in Austin, TX, that is on track for a mid-year closing. This is a key strategic step for the company to enhance domestic semiconductor capacity, as Fab 25 is one of the most advanced 200 millimetre CMOS fabs in the Western Hemisphere.
Backed by a four-year, $1 billion-plus supply deal, the Fab 25 acquisition will immediately boost revenues and cash flow for the company. It will also help scale the company’s TaaS model to more customers, diversify its revenues and strengthen its role in U.S. semiconductor onshoring.
However, the recent share price rally only scratches the surface. This stock offers a compelling entry point for investors in 2025, backed by strong execution and a clear long-term growth trajectory. Let’s dive into the key drivers fuelling its momentum.
SKYT's One Month Price Performance
Image Source: Zacks Investment Research
SKYT’s Launch of ThermaView Drives Growth
SkyWater launched ThermaView Solutions in January 2025 to support high-performance thermal imaging applications. Built on a dedicated 90 nanometre CMOS and MEMS platform, ThermaView aims to strengthen domestic sourcing of thermal sensors and reduce dependence on offshore supply chains.
ThermaView had an immediate impact, becoming a key driver of Wafer Services growth in the first quarter of 2025. Wafer Services revenues surged 70% sequentially, reaching $7.5 million, led by strong demand from two leading defense prime customers. This marked a significant shift from 2024, when 90% of Wafer Services’ revenues came from legacy products. In the first quarter, over half of Wafer Services’ revenues came from new products, with ThermaView playing the leading role.
The company expects new products like ThermaView and recent ATS-to-Wafer Services conversions to fuel most of Wafer Services’ growth throughout 2025, supporting innovation-led expansion at the Minnesota fab and increasing its long-term revenue contribution.
SKYT Advances in Quantum Computing
In the first quarter, SkyWater's quantum computing partner D-Wave achieved a major breakthrough, demonstrating quantum supremacy and simulation, a milestone proving that quantum systems can outperform classical computers on targeted problems. This announcement further validates SKYT’s role as a critical enabler of U.S.-based quantum innovation.
SkyWater has supported D-Wave since 2013 as a superconducting process flow developer, helping co-create custom superconducting qubits. D-Wave now leads the industry in quantum hardware and cloud services, including a partnership with Amazon Web Services to offer quantum computing on the cloud.
Quantum computing is part of SkyWater’s Advanced Compute segment, which became the company’s second-largest end market in 2024, after aerospace and defense. Notably, over 90% of advanced compute revenues last year were tied to quantum programs with D-Wave and Si-Quantum. SkyWater’s TaaS model and secure U.S. manufacturing give it a unique position in this field, helping translate lab-scale breakthroughs into scalable, production-ready solutions through its work in superconducting, photonic and other qubit-enabling technologies.
SKYT’s Competition and How It Stays Ahead
SkyWater competes with major players, such as Tower Semiconductor , GlobalFoundries (GFS - Free Report) , and ON Semiconductor (ON - Free Report) . Tower Semiconductor focuses on producing analog integrated circuits (IC) for semiconductor firms, while GlobalFoundries manufactures ICs on wafers for industries, including automotive and aerospace. ON Semiconductor delivers semiconductor solutions tailored to automotive and industrial applications. Shares of Tower Semiconductor, GlobalFoundries and ON Semiconductor have risen 10.3%, 0.1% and 10.8%, respectively, in the past month.
SkyWater differentiates itself from larger competitors by concentrating on specialized, high-value chip production instead of high-volume, mass-market manufacturing. Its status as a Department of Defense-accredited trusted foundry also gives it access to exclusive government contracts and defense programs that are unavailable to non-accredited competitors.
Additionally, SkyWater sets itself apart from rivals by offering a uniquely differentiated ATS model. Unlike traditional foundries focused on mass production or labs that lack manufacturing scale, SkyWater's TaaS approach supports early design-for-manufacturability and quality-focused production, enabling customers to accelerate innovation from concept to market with unmatched agility and support.
SKYT’s Earnings Estimate Revisions Show a Positive Trend
The Zacks Consensus Estimate for SKYT’s 2025 loss is currently pegged at 1 cent per share, which has narrowed by 85.71% over the past 30 days. The estimate suggests a year-over-year decline of 116.67%. The consensus mark for revenues is pegged at $307.15 million, indicating a year-over-year decline of 10.26%.
SKYT beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, with the average surprise being 203.9%.
SkyWater Technology, Inc. Price and Consensus
SkyWater Technology, Inc. price-consensus-chart | SkyWater Technology, Inc. Quote
SKYT is Trading at a Discount
From a valuation perspective, SKYT currently trades at a forward 12-month P/S ratio of 1.28X, which is at a significant discount compared to the Zacks Electronics – Semiconductors industry average of 7.90X. This makes this stock a great pick for a value investor. A value score of B further reinforces an attractive valuation for SKYT at this moment.
SKYT's P/S F12M Ratio
Image Source: Zacks Investment Research
Here’s Why You Should Buy SKYT Stock Now
Investors should consider SkyWater Technology for its unique position as a U.S.-based, DoD-accredited pure-play foundry, enabling access to exclusive defense and aerospace programs. SkyWater’s Wafer Services segment has been seeing strong momentum, fueled by the successful launch of its ThermaView Solutions, with new products playing a significant role in driving growth and shifting the revenue mix beyond legacy products. SkyWater also plays a critical role in the quantum computing ecosystem, partnering with leaders like D-Wave and supporting domestic manufacturing through its TaaS model. With strategic moves like the Fab 25 acquisition, SKYT offers a compelling long-term investment opportunity.
SKYT currently sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks proprietary methodology. You can see the complete list of today’s Zacks #1 Rank stocks here.