Silicon Laboratories (SLAB) AI Stock Analysis

• Market Cap: $6.75B
• Dividend Yield: N/A
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• Revenue Growth: 47.10%
• EPS Growth: 64.29%
• Country: US
• Employees: 1,889
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.56
• Shares Outstanding: 32,955,930
• 10 Day Avg. Volume: 773,765
• 30 Day Avg. Volume: 1,170,661
• PEG Ratio: 1.00
• Price to Book (P/B): 3.94
• Price to Sales (P/S): 5.50
• P/FCF Ratio: 65.62
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 8.20
• Enterprise Value/Gross Profit: 14.08
• Enterprise Value/Ebitda: -337.38
• 1Y Price Target: $222.86
• Price Target Upside: 8.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): 2.7
• Revenue Forecast (FY): $926.57M

• Rating: 65 Neutral
• Price Target: $218.00 ▲(6.51% Upside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is driven primarily by strong financial flexibility (minimal debt and positive TTM cash generation) and a major positive M&A catalyst (TI acquisition deal). Offsetting these are weak current profitability (negative net margin/negative P/E) and mixed near-term technical signals despite a strong longer-term uptrend.

Positive Factors

Balance sheet strength

Minimal net debt and a sizable equity base give Silicon Labs durable financial flexibility: ability to fund R&D, support customers through cycles, pursue strategic initiatives or absorb integration costs. This reduces refinancing risk and preserves optionality over the next several quarters.

Positive cash generation

Consistent positive trailing cash generation, even with reported net losses, indicates decent cash conversion from product revenues and disciplined working-capital management. That cash buffer supports ongoing product development and execution through cyclical downturns.

Transformational TI acquisition

The TI deal is a structural change: access to TI's manufacturing, channels and scale should broaden distribution, reduce cost through targeted synergies, and expand product breadth. This materially strengthens long-term market position and operational resilience post-close.

Negative Factors

Persistent unprofitable operations

Despite solid gross margins, sustained operating losses and a negative net margin indicate the business has not yet converted product economics into consistent profitability. This weak return profile pressures long-term shareholder returns absent material margin improvement.

Cash flow volatility

Historic swings into negative operating cash flow and a decline in FCF highlight cyclicality and execution risk in semiconductor end markets. Volatile cash generation can limit steady funding for R&D/capex and increases reliance on the balance sheet or acquirer support during downturns.

Revenue volatility & dependence on design wins

Revenue depends on lumpy design wins and IoT end-market cycles; recent volatility implies uneven production ramps and product lifecycles. That makes multi-quarter forecasting and margin sustainability uncertain until larger scale or steadier demand patterns emerge.

Silicon Laboratories Business Overview & Revenue Model

Company Description

Silicon Laboratories Inc., a fabless semiconductor company, provides various analog-intensive mixed-signal solutions in the United States, China, and internationally. The company's products include wireless microcontrollers and sensor products. Its products are used in various electronic products in a range of applications for the Internet of Things (IoT), including connected home and security, industrial automation and control, smart metering, smart lighting, commercial building automation, consumer electronics, asset tracking, and medical instrumentation. The company sells its products through its direct sales force, as well as through a network of independent sales representatives and distributors. Silicon Laboratories Inc. was founded in 1996 and is headquartered in Austin, Texas.

How the Company Makes Money

Silicon Laboratories generates revenue primarily through the sale of its semiconductor products, which include microcontrollers, wireless chips, and sensor solutions. The company operates on a model of selling integrated circuits (ICs) that cater to various sectors, including IoT, automotive, and industrial applications. Key revenue streams include direct sales to original equipment manufacturers (OEMs), distribution partnerships, and licensing agreements for its software and intellectual property. Strategic partnerships with leading technology firms enhance its market reach and contribute to growth by integrating Silicon Labs' solutions into larger systems. Additionally, the company benefits from recurring revenue through long-term agreements and support services, providing ongoing value to its customers.

Silicon Laboratories Financial Statement Overview

Summary

Balance sheet strength (essentially no debt and large equity base) and positive TTM operating/free cash flow support financial resilience. However, operating losses and a negative net margin, plus historically volatile cash flows, keep the score moderate.

Income Statement

TTM (Trailing-Twelve-Months) revenue is growing (+5.6%) and gross margin remains solid (~58%), showing healthy product economics. However, profitability is still weak with operating losses and a negative net margin (about -8% TTM). While losses have narrowed materially versus 2024 (when margins were much worse), the business has not yet returned to consistent operating profitability, and revenue has been volatile across recent years.

Balance Sheet

The balance sheet is a clear strength: TTM shows essentially no debt and a large equity base (~$1.09B) supporting a solid asset position (~$1.27B). Leverage has come down sharply from 2020–2022 levels, reducing financial risk and improving flexibility. The main weakness is returns: with ongoing net losses, return on equity is negative in TTM and recent years, indicating the balance sheet is not currently generating attractive shareholder returns.

Cash Flow

TTM (Trailing-Twelve-Months) cash generation is positive, with operating cash flow (~$96M) and free cash flow (~$66M) despite net losses, signaling decent cash conversion and cost discipline. That said, free cash flow is down versus the prior period (about -10.6% growth), and the company posted negative operating and free cash flow in 2023 and 2024, highlighting volatility and some execution risk through the cycle.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	784.76M	584.39M	782.26M	1.02B	720.86M
Gross Profit	456.98M	312.19M	460.59M	642.56M	425.39M
EBITDA	-18.85M	-104.92M	46.09M	189.77M	35.41M
Net Income	-64.91M	-191.01M	-34.52M	91.40M	2.12B
Balance Sheet
Total Assets	1.27B	1.22B	1.44B	2.17B	2.96B
Cash, Cash Equivalents and Short-Term Investments	443.62M	382.16M	439.22M	1.19B	2.04B
Total Debt	0.00	21.43M	64.83M	547.58M	450.60M
Total Liabilities	174.90M	142.65M	234.37M	764.42M	745.87M
Stockholders Equity	1.09B	1.08B	1.21B	1.41B	2.21B
Cash Flow
Free Cash Flow	65.79M	-25.66M	-52.63M	45.28M	-129.02M
Operating Cash Flow	95.71M	-13.91M	-30.35M	71.81M	-100.44M
Investing Cash Flow	-12.03M	113.12M	469.81M	240.54M	2.27B
Financing Cash Flow	-1.07M	-45.10M	-711.87M	-887.05M	-1.30B

Silicon Laboratories Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 204.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLAB, the sentiment is Positive. The current price of 204.68 is above the 20-day moving average (MA) of 203.91, above the 50-day MA of 178.27, and above the 200-day MA of 145.25, indicating a bullish trend. The MACD of 6.11 indicates Positive momentum. The RSI at 69.96 is Neutral, neither overbought nor oversold. The STOCH value of 54.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLAB.

Silicon Laboratories Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRUS	83 Outperform	$6.90B	10.99	20.13%	―	2.19%	19.22%
ONTO	79 Outperform	$9.67B	59.58	6.85%	―	6.38%	-4.15%
SMTC	69 Neutral	$8.24B	-541.20	4.89%	―	20.60%	―
AMKR	68 Neutral	$11.04B	26.10	8.73%	0.81%	0.13%	-16.17%
ALGM	66 Neutral	$5.81B	149.88	-1.40%	―	-7.23%	-15.69%
SLAB	65 Neutral	$6.75B	-66.51	-6.05%	―	47.10%	64.29%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Silicon Laboratories Corporate Events

Silicon Labs Signs $7.5B TI Acquisition Deal

On February 4, 2026, Silicon Labs announced it had entered into a definitive agreement to be acquired by Texas Instruments in an all-cash transaction valuing the company at approximately $7.5 billion, or $231 per share, with closing expected in the first half of 2027 subject to shareholder and regulatory approvals. The deal will see Silicon Labs merge into a wholly owned Texas Instruments subsidiary and is designed to create a global leader in embedded wireless connectivity by combining Silicon Labs’ mixed-signal and wireless portfolio with Texas Instruments’ analog and embedded processing capabilities, internal 300mm manufacturing footprint and broad sales channels, reshoring Silicon Labs’ production, expanding the combined product lineup by roughly 1,200 wireless parts, and targeting about $450 million in annual manufacturing and operational synergies within three years of closing; Texas Instruments expects the transaction to be earnings-accretive in the first full year after close while maintaining its policy of returning all free cash flow to shareholders, underscoring a strategic push to deepen its position in fast-growing connected device markets.

The most recent analyst rating on (SLAB) stock is a Buy with a $167.00 price target. To see the full list of analyst forecasts on Silicon Laboratories stock, see the SLAB Stock Forecast page.