Expansion of Industrial IoT Solutions Might Change the Case for Investing in Silicon Laboratories (SLAB)

• Earlier this month, Silicon Labs announced general availability of its FG23L wireless SoC, highlighting advances in secure, long-range, and cost-effective connectivity for industrial IoT and smart city markets; meanwhile, Digi International revealed new Wi-SUN solutions built on Silicon Labs’ platform to promote open, secure mesh networking for critical infrastructure.
• These product launches position Silicon Labs' technology at the center of expanding IoT applications, highlighting rising industry demand for affordable, scalable wireless solutions with robust security and long-range capabilities.
• We’ll now consider how the FG23L’s focus on low-cost, high-performance Sub-GHz IoT connectivity could reshape Silicon Labs’ investment narrative.

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Silicon Laboratories Investment Narrative Recap

Being a shareholder in Silicon Labs means believing in the long-term growth of secure, energy-efficient IoT chip solutions, particularly as industries and cities increasingly require affordable, reliable wireless connectivity. The recent launch of the FG23L wireless SoC reinforces the company’s focus on scaling IoT adoption and could contribute to near-term design wins, although its impact on addressing gross margin pressure from industry competition may not be immediately material.

The announcement of Digi International’s new Wi-SUN solutions leveraging Silicon Labs’ technology is especially relevant here, as it highlights the practical uptake of Silicon Labs’ platforms in large-scale, critical infrastructure mesh networks, aligning with growing demand for secure, scalable IoT connectivity, one of the primary business catalysts identified by market analysts.

But while this uptake is promising, investors should be aware that intensifying competition from larger chip makers and low-cost rivals could present ...

Read the full narrative on Silicon Laboratories (it's free!)

Silicon Laboratories is expected to reach $1.2 billion in revenue and $13.9 million in earnings by 2028. This outlook assumes a 19.2% annual revenue growth rate and a $118.5 million increase in earnings from the current -$104.6 million.

Uncover how Silicon Laboratories' forecasts yield a $150.44 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Fair value views for Silicon Labs from the Simply Wall St Community range widely from US$80.96 to US$150.44, based on 2 independent estimates. With competition remaining a core risk for Silicon Labs’ profitability, consider how other investors assess future pricing power and margins in their forecasts.

Explore 2 other fair value estimates on Silicon Laboratories - why the stock might be worth as much as 12% more than the current price!

Build Your Own Silicon Laboratories Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Silicon Laboratories research is our analysis highlighting 1 key reward that could impact your investment decision.
• Our free Silicon Laboratories research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Silicon Laboratories' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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