Ashraf Eassa
Long/short equity, contrarian, independent research, tech

Cavium Networks: A High Growth Networking Play With The Best ARM Server Play Built-In

Cavium Networks (NASDAQ:CAVM) is a developer of specialty, high performance semiconductor products for networking applications. While the company's shares are down meaningfully from their recent highs due largely to Cisco's (NASDAQ:CSCO) recent weakness (Cisco is Cavium's largest customer), I believe that this weakness represents a compelling buying opportunity for growth-oriented tech investors.


    Cavium's core specialty network processor business is growing, benefitting from both secular trends as well as share gains There is solid operating leverage in the business model, and management has been able to grow revenues at a rate meaningfully higher than opex While core networking chip business is attractive (and could in itself support a meaningfully higher share price), success in the emerging ...
Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details