With semiconductor stocks selling off on worries about
weakness in autos, consumer products (including smartphones), and
industrial markets, data center is one of the few areas of strength in
the space, and Inphi’s (IPHI)
strong growth position in that market is even more attractive now.
Strong results and ongoing growth in high-end data center deployments
continue to drive these shares, with the stock up almost 20% so far this
year and more than 90% over the past year.
As I’ve
said before in reference to Inphi’s valuation, you’re either on board
with the growth/momentum angle and relatively insensitive to valuation,
or you’re on the sidelines waiting for a sell-off. The stock did pull
back briefly below $60 at what looks like will be the “peak panic”
moment for this Covid-19 outbreak, but has since shot up close to 60%. I
can’t call today’s price any sort of bargain by typical valuation
approaches, but Inphi continues to offer very atypical growth on the
back of drivers like ColorZ, PAM4, and 400G ZR.
Follow this link for more:
Inphi's Reaping The Rewards Of First-Mover Advantage In Data Center
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