Skip to main content

Shares of Skyworks Solutions (SWKS) - Get Skyworks Solutions, Inc. Report were skyrocketing over 12% during Friday morning trading, after reporting better than expected first quarter fiscal 2017 earnings results after Thursday's market close.

The Apple (AAPL) - Get Apple Inc. Report parts supplier posted earnings of $1.61 per share on revenue of $914 million. Wall Street had projected earnings of $1.58 per share, on revenue of $903 million.

"Skyworks is up the most of any stock. The reason is because not only did it say that Apple's business was strong, which should be a better read through for Apple, but it is also diversifying away from Apple," TheStreet's Jim Cramer said from the floor of the New York Stock Exchange on Friday morning.

Furthermore, Cramer came away impressed with Skyworks' ability to portray its success story not primary predicated on Apple. "It really talked about the strength in Internet of Things, autonomous cars, and strength in the multi-year rollout of 5G which is about to happen and how much you need Skyworks Solutions for that."

TheStreet Recommends

"Our Q1 results, strong outlook and design win momentum reflect solid traction spanning our mobile, IoT, and broad market portfolios," Skyworks CEO Liam Griffin said on the conference call.

"By 2020, a single autonomous car is expected to consume 4,000 gigabits of data per day in real time diagnostics, positioning, vehicle-to-vehicle communications, and that's equivalent to the daily data consumed by more than 2,000 smartphone users in 2017," Griffen said. "Skyworks is uniquely positioned to capitalize with solutions that solve these daunting connectivity challenges, setting the stage for outperformance across current and new markets."

"The readthrough is positive to every single semiconductor," Cramer contended. He added that one of the themes he's been narrowing in on post-initial Trump bump is to invest in the semiconductors.

"I am being rewarded again with that theory; it's the place to be," Cramer said.

(Apple is a core holding of Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trialhere.)