Integrated Device Technology Managing To Stay Ahead Of Expectations

Since my first write-up on the company for Seeking Alpha in September of 2017, Integrated Device Technology (IDTI) (or "Integrated Device") has done alright. The shares are up about 30% since then, outdoing the SOX by about 10%, more or less matching ON Semiconductor (ON), beating Silicon Labs (SLAB) by a bit, and handily outperforming Broadcom (AVGO) over that time. Better still, management has delivered performance that suggests that major drivers like server memory interfaces, wireless charging, and sensors, can, in fact, lead to significantly higher revenue and margins in the year to come.

Not surprisingly given the performance, the valuation argument is more of a stretch today. Trading at around 5x forward revenue, I'd argue the price today is a pretty reasonable reflection of the growth and margin potential at IDTI, but I also happily acknowledge that IDTI offers more near-term year-over-year growth potential than many other chip names and investors will flock to (and pay for) exceptional growth opportunities.

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Integrated Device Technology Managing To Stay Ahead Of Expectations