You're probably already having a love affair with your smartphone, but you might find shares of Skyworks Solutions to be even sweeter.
The chipmaker outfits devices like Apple's (AAPL) iPhone and Motorola's (MMI) Droid with key wireless connectivity technology, and it's also equipping the emerging tablet market, including the iPad.
"From our perspective, investing in Skyworks is the best way to play the smartphone and tablet trends," said Patrick Newton, analyst at Stifel Nicolaus, adding that the market has a lot more room to grow. "Only between 20% and 25% of handsets that are sold globally are smartphones, so this is a trend that has legs."
Newton expects 30% of devices sold in 2011 will be smartphones, and that share will continue to gain as emerging markets like India get 3G networks. Skyworks stands to benefit since 80% of its business is providing chips to manufacturers that also include Nokia (NOK) and Research in Motion (RIMM).
By the end of the year, Newton expects Skyworks' stock to jump almost 10% to $40 a share.
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