Sunday, May 28, 2017

Cavium Networks Back On Its Growth Path

I really can't complain about how Cavium (NASDAQ:CAVM) has done since my last article on the company, as the shares have risen almost 60% and outperformed a comp group that includes Broadcom (NASDAQ:AVGO), Intel (NASDAQ:INTC), Mellanox (NASDAQ:MLNX), and Qualcomm (NASDAQ:QCOM) - the best of which (Broadcom) is up about 45% since that positive early August write-up.

Cavium has done a lot to reassure the Street that it can drive meaningful organic growth with Octeon, Fusion-M, LiquidIO, LiquidSecurity, and Xpliant. While it still looks as though Cavium is hitting "singles and doubles" outside of Octeon, that's for the time being and there are credible growth acceleration opportunities in these smaller contributions. It's harder to make a positive valuation call today, but it's also hard to recommend stepping aside so long as beat-and-raise quarters are in play.

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Cavium Networks Back On Its Growth Path

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