Thursday, May 3, 2018

Integrated Device Technology Doing Okay For Now

Investors who’ve chosen to sit on the sidelines and wait and haven’t lost out on much when it comes to Integrated Device Technology (or “IDT”) (IDTI), as the shares are down about 6% from when I last wrote about the company. Quite frankly, though, that’s been true for the sector as a whole and investors would have done better with IDT than with Broadcom (AVGO), Maxim (MXIM), ON Semiconductor (ON), Sensata (ST), or the SOX in general over the last three months, as investors have grown more concerned about whether there’s enough demand growth to sustain this extended run that chip companies have enjoyed.

My basic outlook on IDT really hasn’t changed much. Between its strong positions in data center memory interfaces and wireless handset charging, growth opportunities in sensors, and longer-term opportunities in communications, I believe IDT can outgrow many of its peers while generating good margins. With a fair value in the low $30s and some appeal as a buyout candidate, I think these shares are still worth considering even if it is getting late to play the semiconductor space.

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Integrated Device Technology Doing Okay For Now

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