There's A Growing Separation Between Silicon Labs' Long-Term Potential And The Current Valuation

Mar. 14, 2022 4:26 PM ETSilicon Laboratories Inc. (SLAB)
Stephen Simpson profile picture
Stephen Simpson


  • Silicon Labs continues to benefit from robust present-day and prospective future growth in IoT, with double-digit growth potential in a range of industrial, commercial, and consumer end-markets.
  • Despite a higher revenue base, management has not meaningfully upgraded its long-term margin targets, and near-term margins are likely to hit a significant near-term peak.
  • Weaker margins can be a meaningful headwind for sentiment, but the longer-term potential of Silicon Labs shares is getting more interesting.

smart home concept

PonyWang/E+ via Getty Images

Second chances to buy strong growth stocks are always worth a look, particularly if there doesn't seem to be anything broken with the fundamental growth story. Such would seem to be the case at Silicon Labs

This article was written by

Stephen Simpson profile picture
Stephen Simpson is a freelance financial writer and investor. Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds); now a semi-retired raccoon rancher. That last part isn't entirely true. Probably.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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