SkyWater Technology (SKYT): Evaluating Valuation After Strong Q3 Earnings Growth and Profit Turnaround

SkyWater Technology (SKYT) just released its third quarter earnings, revealing that sales climbed to $151 million and net income surged compared to the same period last year. This report has led to renewed investor interest.

See our latest analysis for SkyWater Technology.

Momentum is clearly building for SkyWater Technology, with its latest share price jumping 27.2% in a single day after those strong earnings. Looking at the bigger picture, the stock has returned nearly 79.4% to shareholders over the past year. This far outpaces many semiconductor peers and suggests investors see real growth potential ahead.

If this kind of move has you curious about the broader tech space, now’s a great moment to discover See the full list for free.

With shares soaring and financials on the upswing, the big question now is whether SkyWater Technology still trades at an attractive value or if the market is already factoring in all of its future growth potential.

Most Popular Narrative: 18% Overvalued

SkyWater Technology’s prevailing narrative points to a fair value of $15.83, notably below its last close of $18.71, casting doubt on whether the recent rally is justified by fundamentals.

SkyWater’s expansion into quantum computing and advanced packaging, including the upcoming rollout of a superconducting platform and Florida advanced packaging operations, positions the company at the forefront of high-growth technology segments. These areas are supported by national security and industrial policy trends, which could lay the foundation for above-market revenue growth and long-term margin expansion.

Read the complete narrative.

Want to know what powers that higher valuation? The narrative relies on bold expectations for rapid sales expansion and margin boosts from these new technology bets. Intrigued about the specific financial projections and just how aggressive those targets are? Unpack the narrative to reveal the ambitious roadmap behind the valuation.

Result: Fair Value of $15.83 (OVERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, heavy reliance on government contracts and possible margin pressures from the Fab 25 integration remain key risks that could challenge this optimistic outlook.

Find out about the key risks to this SkyWater Technology narrative.

Another View: Our DCF Model Suggests Big Upside

While analyst estimates imply SkyWater Technology is overvalued, our SWS DCF model tells a different story. It calculates a fair value of $25.90 per share, which is about 27.8% above the current price. This suggests potential for further gains if the growth trajectory holds. Could the market be missing something deeper in the forecasts?

Look into how the SWS DCF model arrives at its fair value.

SKYT Discounted Cash Flow as at Nov 2025

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out SkyWater Technology for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 848 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

Build Your Own SkyWater Technology Narrative

If you see things differently or want a personalized take, dive in and shape your own view of SkyWater Technology in just a few minutes with Do it your way

A great starting point for your SkyWater Technology research is our analysis highlighting 3 key rewards and 5 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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