Guy Adami Says To Stick With Skyworks Heading Into Earnings

Despite the move to the upside on the announcement, Skyworks Solutions Inc (NASDAQ: SWKS) will likely continue to rally into earnings next week, Guy Adami said Thursday on CNBC's "Fast Money."

The stock is close to taking out its all-time high of $195.82.

What Happened: Skyworks announced a $2.75-billion deal on Thursday to acquire the infrastructure and automotive business of Silicon Laboratories Inc (NASDAQ: SLAB).

The company is likely "feeling pretty good about things" in order to make a deal of this magnitude, Adami said. He added that Skyworks is not overly expensive on a valuation basis.

Skyworks is set to report second-quarter earnings on April 29.

Price Action: Skyworks was up 4.6% to $192 in after-hours trading. Silicon Labs was up 14% at $165.

Image by Dmitrii Bardadim from Pixabay