All Is Seemingly Forgiven As Silicon Labs Rockets Back Into Growth Investors' Good Graces

It’s been a wild ride for Silicon Labs (SLAB). Something of a growth darling (at least at times) over the last few years, Silicon Labs actually underperformed the SOX in 2018 and closed the fiscal year with an ugly miss-and-lower. While the shares had followed the year-to-date rally in semiconductor stocks, it was still lagging before a surprisingly strong first quarter seemingly shifted sentiment overnight.

I had previously said I’d be interested in SLAB in the low $70’s, and it never quite got there before this rocket ride back toward $110. Therein lies the problem with trying to be disciplined on price/value, particularly when it involves growth stocks. Although Silicon Labs looks too pricey now, I can understand why at least some investors are piling back in – SLAB is setting up attractive qoq growth rates at a time when many semiconductors still look likely to struggle to post attractive growth.

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All Is Seemingly Forgiven As Silicon Labs Rockets Back Into Growth Investors' Good Graces