Silicon Labs (SLAB): Assessing Valuation After a Recent 14% One‑Month Share Price Rebound

Silicon Laboratories (SLAB) has quietly outperformed over the past month, rising about 14% even as its past 3 months remain slightly negative. That mix of momentum and recent volatility makes the setup interesting.

See our latest analysis for Silicon Laboratories.

Zooming out, that 13.98% 1 month share price return comes after a choppier spell, with the share price now at $134.49 and short term momentum starting to rebuild even as longer term total shareholder returns remain modest.

If Silicon Laboratories has caught your eye, this could be a good moment to see what else is moving in semis and hardware via high growth tech and AI stocks.

With shares up in the short term but still only modestly ahead over the past few years, the real question now is whether Silicon Laboratories is quietly undervalued, or if the market is already pricing in its next leg of growth.

Most Popular Narrative: 10.6% Undervalued

With Silicon Laboratories last closing at $134.49 against a narrative fair value near the mid 150s, the story leans bullish on recovery potential.

Ongoing rollout of new, highly integrated, energy efficient wireless platforms (Series 2 and Series 3) positions Silicon Labs to capture increased market share and supports higher ASPs, which is likely to drive top line growth and gross margin improvement.

Read the complete narrative.

Want to see the math behind that upside? The narrative leans on rapid revenue expansion, a sharp swing to profitability, and a premium earnings multiple. Curious how aggressive those targets really are?

Result: Fair Value of $150.44 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, intensifying wireless IoT competition and potential chip commoditization could pressure Silicon Labs margins and undermine the premium multiple that this narrative relies on.

Find out about the key risks to this Silicon Laboratories narrative.

Another View: Multiples Point to a Richer Price

While the narrative says Silicon Laboratories looks about 10.6% undervalued, its 5.9x price to sales tells a different story. That is richer than both peers at 3.5x and a 5.1x fair ratio, suggesting less cushion if growth stumbles. Which signal do you trust more?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Silicon Laboratories Narrative

If you see Silicon Labs differently or want to stress test the assumptions yourself, build your own narrative in just a few minutes: Do it your way.

A good starting point is our analysis highlighting 1 key reward investors are optimistic about regarding Silicon Laboratories.

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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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