- Piper's Gus Richard sees "a number of growth catalysts" for InvenSense (INVN +3.4%) over the next two years. They include a higher penetration rate at top customer Samsung (currently over 30% of sales), rising optical image stabilization-related gyroscope sales, MEMS microphone growth (previous), better low-end smartphone penetration, and the long-anticipated addition of Apple as a customer.
- In addition, Richard expects deeper product integration and software content gains to offset standard mobile price erosion, and help keep InvenSense's gross margin steady while revenue grows at a 25%-35% clip.
- InvenSense recently tumbled due to the guidance it provided with its Sep. quarter beat. Shares have also been pressured a bit by a $150M convertible debt offering.