Silicon Labs (SLAB)
continues to leverage its opportunities in the fast-growing IoT market,
and that continues to drive good revenue and profit growth for this
relatively small semiconductor stock. Silicon Labs has moved
aggressively, largely through M&A, to acquire a strong portfolio in
wireless (especially mesh networking and connectivity) technologies,
giving it a strong position in home/consumer IoT and allowing it to
"punch above its weight" relative to some of its much larger rivals.
While
I continue to expect good things for SLAB's IoT business, and I believe
the Infrastructure business can leverage growth in optical and 5G
deployments, the valuation is not forgiving. Growth and momentum
investors likely won't care about the valuation, but with the stock
trading at close to five times forward revenue, it may be challenging
for the company to grow fast enough to substantially expand that
multiple.
Read more here:
Silicon Labs' IoT Energizer Bunny Keeps Going
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