Silicon Labs Surges As The Growth Story Comes Back Into Focus

Investors, particularly institutional investors, can be a fickle lot, and I believe you can see that to some extent in Silicon Labs’ (SLAB) price history. Although the IoT business has continued to grow, particularly the connectivity side, the shares have chopped around as the stock has gone in and out of favor as a growth stock.

With recent rumors that the company is shopping the “analog business”, a move that would make Silicon Labs a much more streamlined IoT connectivity growth story, the growth stock angle has come back into play, pushing the stock up more than 40% since my last update (even with a meaningful recent decline from its peak), about 10% better than the SOX over that time.

Silicon Labs has long been one of my “like the business, not crazy about the valuation” names, and that is certainly the case after this recent surge. I love the IoT connectivity angle to the story, but I think you have to be a growth-driven investor with little concern about valuation to find these shares appealing, and that’s simply not my investing approach.

 

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Silicon Labs Surges As The Growth Story Comes Back Into Focus