3. Skyworks Solutions Inc. ( SWKS): Together with its subsidiaries, offers analog and mixed signal semiconductors worldwide. Market cap at $3.98B, most recent closing price at $20.50.Skyworks is now valued at 8.4 times its FY14 earnings per share estimates. In November 2012, the company authorized a stock buyback program totaling $200 million, or 5.1% of its outstanding shares. Earlier that month, Skyworks fell because it forecast revenue of $450 million, and earnings of $0.54 per share in Q1.
4. Avago Technologies Limited ( AVGO): Engages in the design, development, and supply of analog semiconductor devices worldwide. Market cap at $8.31B, most recent closing price at $33.87. Avago Technologies was estimated by Barclays to earn between $2.40 and $2.70 per iPhone 5 unit sales, close to the $3 per phone earned by Skyworks. The $8.31 billion company rebounded from the $31 low in December, but is still below its $37-level made in August 2012.
5. Micron Technology Inc. ( MU): Engages in the manufacture and marketing of semiconductor devices worldwide. Market cap at $7.77B, most recent closing price at $7.60. Micron supplies memory for Apple, but it also makes PCM, or phase-change memory chips, for Nokia (NOK). The chip gives better performance than NAND flash memory. Data is not lost when the power is lost. In its Q1, Micron reported weak DRAM sales, but this was due to the weak PC market.
Valuation will matter. So will forward P/E, debt ratios, and past quarterly sales:
Written by Kapitall's Chris Lau.