Barclays upgrades two chipmakers on Apple's potential release of foldable iPhone

Barclays has upgraded to "buy" shares of mid-cap semiconductor manufacturers Skyworks Solutions and Qorvo, which could benefit from the release of a foldable iPhone expected to go on sale in September, the analysts said.

Investors should take a closer look at Skyworks Solutions and Qorvo, according to Barclays. On Wednesday, the bank upgraded both stocks from “hold” to “buy” and raised their target prices, according to Yahoo Finance data.

Barclays set a new target price for Skyworks Solutions at $70 per share, 16.6% above its previous target. This implies 13.3% upside to the stock’s Wednesday close.

The target price for Qorvo was raised by 5% to $100 per share, implying 17.6% upside from its Wednesday close.

The upside for both companies is tied to the expected launch of a foldable iPhone, said Barclays analyst Tom O'Malley. Apple plans to begin selling the new model in September alongside the iPhone 18 Pro and Pro Max, Bloomberg reported, citing sources.

New smartphones typically feature more advanced capabilities than their predecessors, requiring chips with sophisticated components – such as those produced by Skyworks and Qorvo, O’Malley said. However, Apple’s strategy of releasing more affordable iPhone and MacBook models could dampen the company’s typically strong sales in November and December, he noted. Still, “once the news is out we think it will be hard to stay more negative,” the analyst added.

Barclays’ view runs counter to Wall Street consensus.

The most common rating on Skyworks shares is “hold,” assigned by 18 analysts. Another seven recommend "buy," and two "sell." The average target price is $63.80 per share, implying just over 3% upside from the latest close.

For Qorvo, 19 analysts recommend holding the stock, three suggest buying, and one advises selling. The average target price of $84.75 per share is roughly in line with current levels.

On Monday, Mizuho downgraded both stocks to "sell." Its analysts cited supply-chain challenges and the outlook for the handset industry, the Fly reported. Earlier, CNBC, citing analyst estimates, said the global smartphone market could face its sharpest decline on record in 2026 due to a chip shortage.

The launch of a foldable iPhone is a key initiative for Apple as it seeks to expand its smartphone lineup with new designs, pricier models, and enhanced features, Bloomberg wrote.

Reports that Apple is working on a foldable smartphone first emerged in January 2021. The device had been expected to reach the market in 2024, but production challenges pushed the timeline to 2026, according to the Independent.

In early April, Nikkei Asia reported that Apple was facing engineering test issues with the iPhone Fold and that the launch could be delayed to 2027, but Bloomberg sources said the debut is still planned for September.

The agency noted that the new model will allow Apple to compete with Samsung Electronics and Chinese smartphone makers that have offered foldable devices for years.