Skyworks Solutions Shares Slump in Q4 as Value Strategy Underperforms Broader Market
In its recently released fourth-quarter 2025 commentary, Pzena Investment Management detailed the performance of its Focused Value Strategy. The period, characterized by relentless momentum in artificial intelligence and the sustained dominance of mega-cap technology stocks, proved challenging for value-oriented approaches. The strategy posted a net return of 2.5%, trailing the 3.8% gain of the Russell 1000® Value Index. Despite this short-term underperformance, Pzena maintains that significant valuation disparities present a compelling opportunity for patient, long-term value investors.
Among the notable detractors from the fund's performance was Skyworks Solutions (NASDAQ: SWKS). The Irvine-based semiconductor designer and manufacturer saw its shares decline 14.43% in the one-month period ending January 30, 2026, closing at $55.76. Over the preceding twelve months, the stock has shed more than a third of its value, leaving it with a market capitalization of approximately $8.36 billion.
In its investor letter, Pzena's team addressed the holding directly. "While Skyworks Solutions remains a fundamentally sound company within our portfolio, the current market is overwhelmingly focused on pure-play AI narratives and near-term growth catalysts," the letter stated. The firm noted that hedge fund interest in SWKS waned slightly, with 35 funds holding the stock at the end of Q3 2025, down from 39 in the prior quarter. Pzena suggested that while SWKS has investment potential, other opportunities in the AI space may present a more favorable risk-reward profile in the current climate.
The commentary underscores a broader tension in equity markets: the divergence between the soaring valuations of a handful of AI-centric leaders and the stagnation or decline of many established companies in cyclical or competitive sectors like semiconductors.
Market Voices: Investor Reactions
David Chen, Portfolio Manager at Oakhaven Capital: "Pzena's experience is a classic case study. The market isn't rewarding quality or value right now; it's chasing a very specific theme. For disciplined investors, this creates the entry points that define a decade. Skyworks' core business in connectivity is not obsolete—it's just out of fashion."
Rebecca Shaw, Independent Retail Investor: "It's incredibly frustrating as a long-term shareholder. The company is profitable, has a solid balance sheet, and is integral to countless devices. Yet, because it's not branded as an 'AI winner,' it gets thrown out with the bathwater. The market's myopia is punishing good companies."
Michael Torres, Tech Analyst at ClearSight Research: "The critique is fair. Skyworks is facing real headwinds—inventory corrections in smartphones and broader end-market softness. It's not just about missing the AI hype train. Their challenge is to articulate a clear and credible path to growth in an AI-driven hardware ecosystem, which they haven't done convincingly yet."
Janet Fischer, Founder of Fischer Value Partners: "This is the moment value strategies are built for. When the crowd flees to one corner of the market, true value is created elsewhere. Pzena's short-term underperformance is irrelevant. The question is whether their thesis on companies like Skyworks is correct for the next three to five years."
Disclosure: This analysis is based on publicly available fund commentary and market data. It is for informational purposes only and does not constitute investment advice.