Apple Chipmaker Skyworks Sued Over Biggest Stock Drop Since 1987

Skyworks Solutions Inc. overstated its competitiveness in the smartphone upgrade market before its biggest stock slide since 1987 after it said its Apple Inc. business share would shrink, according to a proposed class action.

Share prices plummeted 25% on Feb. 6, the day after the chipmaker announced lower-than-hoped second quarter of 2025 revenue guidance and financial impacts from Apple’s retreat, said the complaint filed in the US District Court in the Central District of California Tuesday. It was the biggest single-day fall for the stock in over 37 years, according to data compiled by Bloomberg.

Skyworks on Feb. 5 forecasted a 20% to 25% content decline in the upcoming phone cycle from Apple, its largest customer, on its supply of radio-frequency content amid intensifying competition, the complaint said. Chief financial officer Kris Sennesael added that pull back would begin dampening revenue in the fourth quarter of fiscal year 2025 and 2026, the complaint said.

Skyworks in the latter half of 2024 had rosily projected its growth potential and ability to capitalize on changes to the smartphone upgrade cycle—including amid the rise of artificial intelligence—while delivering financial results, plaintiff Cesar Nunez said. Skyworks relied too much on its longstanding Apple partnership ahead of the launch of its newest phone, misleading investors on the company’s financial outlook, he said.

The proposed class would include those who got Skyworks stock from July 30 through Feb. 5.

Levi & Korsinsky LLP represents Nunez, who seeks damages for alleged securities law violations by the company, its former CEO, and Sennesael.

Skyworks didn’t immediately reply to an email seeking comment.

The case is Nunez v. Skyworks Solutions, Inc., C.D. Cal., No. 8:25-cv-00411, complaint filed 3/4/25.