SkyWater Technology posted 162% revenue growth year-over-year and carries a 96% return on equity, but negative free cash flow quality and a below-floor quality score signal the business has not yet translated top-line expansion into durable financial strength.
Thesis pillars
- Hypergrowth Revenue Unconfirmed→Stable
- Negative Free Cash Flow→Stable
- Momentum Technicals Diverge→Stable
- +1 more pillar — see the Why tab for full reasoning
SkyWater Technology, Inc. (SKYT) Stock Analysis
Technology · Semiconductors
Sell if holding. Engine safety override at $33.90: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.6/10. Specifically: Below-average business quality; Rich valuation; Negative price momentum.
SkyWater Technology is a U.S.-based, independent, pure-play semiconductor foundry that provides foundational-node wafer manufacturing, advanced technology development, and advanced packaging from facilities in Minnesota, Texas, and Florida. The company earns revenue from... Read more
Sell if holding. Engine safety override at $33.90: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.6/10. Specifically: Below-average business quality; Rich valuation; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.6/10, moderate confidence.
Passes 5/8 gates (no SEC red flags, news events none recent, earnings proximity 31d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and clean insider activity. Suitability: aggressive.
About SkyWater Technology, Inc.
About SkyWater Technology, Inc.
SkyWater Technology depends on Infineon for 43 percent of fiscal 2025 revenue, up sharply from 7 percent a year earlier, following the June 2025 acquisition of Infineon's former Fab 25 facility in Austin, Texas. The pure-play foundry now runs two reportable segments — Legacy SkyWater in Bloomington, Minnesota, and SkyWater Texas — plus an advanced-packaging site in Kissimmee, Florida, operating exclusively within the United States. Research and development spending totaled $14.6 million in fiscal 2025.
SkyWater generates revenue through two service lines: Advanced Technology Services, customer-funded engagements that co-develop specialized process technologies within production-grade fabs, and Wafer Services, which manufacture both established platform technologies and technologies that graduate out of ATS programs into volume production. This integrated model — development and manufacturing on the same line — is the company's stated alternative to transferring intellectual property to a separate contract foundry, and it supports extended sales cycles built on technical evaluation and qualification rather than commodity pricing. Input costs run through a roster of named suppliers rather than a single source: Globalwafers and SEH America supply silicon wafers, Honeywell and JX Metals supply sputtering targets, Linde and Airgas supply specialty gases, and Rohm and Haas, JSR Micro, FUJIFILM, and Tokyo Ohka Kogyo supply photoresist. The 2025 addition of the 200-millimeter Fab 25 line in Austin expanded capacity for foundational nodes in the 130-nanometer to 65-nanometer range, paired with a four-year take-or-pay supply agreement with Infineon valued in part at $120 million.
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Beyond Infineon, SkyWater's risk factors flag that a significant portion of sales flows from just three customers, and separately note the company is party to several significant U.S. Government contracts subject to unique procurement risks — exposure tied to its role as a foundry free of foreign ownership or control serving aerospace, defense, and quantum-computing programs that prize a trusted domestic supply chain. That positioning is now layered with deal risk: on January 25, 2026, SkyWater agreed to be acquired by IonQ for $15.00 in cash plus stock, a transaction subject to stockholder approval and antitrust clearance with no guarantee of completion.
See also: Technology · Semiconductors
From SkyWater Technology, Inc.'s most recent 10-K filing, extracted July 6, 2026.
Recent developments
updated 2026-07-07Recent Developments — SkyWater Technology, Inc.
Latest news
- NEWS IonQ Stock Consolidates After 15% Jump On Raised 2026 Guidance — benzinga May 12, 2026 positive
- NEWS What's Going On With IonQ Stock Monday? — benzinga May 11, 2026 neutral
- NEWS SkyWater Technology Shareholders Approve Proposed Merger With IonQ — benzinga May 8, 2026 positive
- NEWS 5 Overbought Tech Stocks to Sell for Profit — benzinga Apr 30, 2026 negative
- NEWS 12 Information Technology Stocks Moving In Monday's Pre-Market Session — benzinga Apr 27, 2026 neutral
Generated 2026-07-07T10:21:37Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMCustomerInfineon43%10-K Item 1: 'Infineon accounted for 43% and 7% of our revenue for fiscal years ended December 28, 2025 and December 29, 2024, respectively.'
- MEDIUMCustomerthree customers10-K Item 1A: 'A significant portion of our sales are derived from three customers, the loss of which would adversely affect our financial results.'
- MEDIUMSupplierlimited number of third-party suppliers10-K Item 1A: 'Our dependence on a limited number of third-party suppliers for key components and capital equipment used in our manufacturing process could prevent us from delivering our products'
- MEDIUMCustomerU.S. Government10-K Item 1A: 'We are a party to several significant U.S. Government (“USG”) contracts, which are subject to unique risks.'
- HIGHGeographicUnited States10-K Item 1: 'We operate exclusively within the United States, with fabrication and packaging facilities in Minnesota, Texas, and Florida.'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers·1 ceiling hit
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $33.90: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.6/10. Specifically: Below-average business quality; Rich valuation; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $32.54. Score 5.6/10, moderate confidence.
Take-profit target: $38.22 (+12.1% upside). Prior stop was $32.54. Stop-loss: $32.54.
Concentration risk — Geographic: United States; Target reached (-12.7% upside); Quality below floor (3.5 < 4.0).
SkyWater Technology, Inc. trades at a P/E of 14.6 (forward -168.4). TrendMatrix value score: 4.0/10. Verdict: Sell.
10 analysts cover SKYT with a consensus score of 2.5/5. Average price target: $35.
What does SkyWater Technology, Inc. do?SkyWater Technology is a U.S.-based, independent, pure-play semiconductor foundry that provides foundational-node wafer...
SkyWater Technology is a U.S.-based, independent, pure-play semiconductor foundry that provides foundational-node wafer manufacturing, advanced technology development, and advanced packaging from facilities in Minnesota, Texas, and Florida. The company earns revenue from customer-funded development engagements and production wafer manufacturing, with Infineon its largest customer at 43% of fiscal 2025 revenue following the 2025 acquisition of Fab 25 in Austin, Texas.