Silicon Laboratories (SLAB) AI Stock Analysis

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Silicon Laboratories

(NASDAQ:SLAB)

Rating:57Neutral

Price Target:

$135.00

▲(1.40% Upside)

Silicon Laboratories' overall stock score is driven by a strong balance sheet and positive earnings call outlook, which are offset by challenges in profitability and cash flow generation. The technical indicators suggest caution, and the valuation is unattractive due to negative earnings and no dividend yield. The company's growth prospects in industrial and commercial segments provide a positive outlook, but financial performance needs improvement.

Positive Factors

Design Wins

Management expressed confidence in outperforming the broader semiconductor market for the year, citing strong design win momentum and a stabilizing market environment.

Earnings

Silicon Labs 2Q results built on its recent momentum and extended its return to solid annual growth, driven by share gains and new program ramps from its industry-leading Series 2 platform.

Market Position

SLAB has consistently earned a premium multiple to the group, owing to its strong fundamental business model and attractive long-term visibility.

Negative Factors

Home & Life Business

Home & Life (H&L) was weaker due to lumpiness in customer programs.

Inventory

Channel inventory remains well below the company's target level of 70-75 days, which could affect short-term supply.

Order Visibility

Visibility beyond the current quarter remains somewhat limited as orders are being placed below lead times.

Silicon Laboratories (SLAB) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$4.29B

Dividend YieldN/A

Average Volume (3M)442.87K

Price to Earnings (P/E)―

Beta (1Y)1.65

Revenue Growth29.66%

EPS Growth47.97%

CountryUS

Employees1,889

SectorTechnology

Sector Strength94

IndustrySemiconductors

Share Statistics

EPS (TTM)0.11

Shares Outstanding32,815,310

10 Day Avg. Volume460,818

30 Day Avg. Volume442,869

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.07

Enterprise Value/Revenue6.54

Enterprise Value/Gross Profit11.91

Enterprise Value/Ebitda-84.51

Forecast

1Y Price Target

$147.67

Price Target Upside10.91% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering9

Silicon Laboratories Business Overview & Revenue Model

Company DescriptionSilicon 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 MoneySilicon Laboratories generates revenue through the sale of its semiconductor products, which include microcontrollers, wireless connectivity solutions, and sensors. The company's revenue model is predominantly based on product sales to original equipment manufacturers (OEMs) and other technology companies. Key revenue streams include IoT solutions, which are increasingly in demand as more devices become connected, and automotive solutions that cater to the growing need for advanced automotive electronics. Additionally, Silicon Labs has established significant partnerships with major technology firms, which enhance its market reach and product integration capabilities, further contributing to its earnings. The company's focus on innovation and development of cutting-edge technology helps maintain its competitive advantage and drives revenue growth.

Silicon Laboratories Earnings Call Summary

Earnings Call Date:Aug 05, 2025

(Q2-2025)

% Change Since: -0.31%|

Next Earnings Date:Oct 29, 2025

Earnings Call Sentiment Positive

Silicon Labs exhibited strong revenue growth driven by successful product innovation and execution on design wins, particularly in the industrial, commercial, and home & life segments. Despite some challenges such as an operating loss and inventory management issues, the overall outlook remains positive with significant growth anticipated in the coming quarters.

Q2-2025 Updates

Positive Updates

Strong Revenue Growth

Silicon Labs reported revenue for the June quarter of $193 million, up 9% sequentially and 33% year-over-year. The revenue for the September quarter is anticipated to be in the range of $200 million to $210 million, implying a strong 23% year-over-year growth rate.

Design Win Success

10 out of the 12 largest customer ramps are on track or ahead of plan for 2025. The Series 2 platform continues to drive growth, with significant wins in Bluetooth, Wi-Fi, and commercial building controls.

Product Innovation and Launch

The introduction of the Series 3 device, the 301, as the world's first device to achieve PSA Level 4 security certification, highlights Silicon Labs' innovative edge.

Industrial and Commercial Business Growth

Industrial and Commercial segment revenue was $110 million, up 14% sequentially and 25% year-over-year, driven by electronic shelf labeling and smart meter rollouts.

Home and Life Business Expansion

Home & Life revenue was $83 million, up 2% sequentially and 45% year-over-year, driven by strong demand in smart home applications and connected healthcare, particularly in continuous glucose monitoring applications.

Negative Updates

Operating Loss

GAAP operating loss for the quarter was $23 million, although this was offset by non-GAAP operating income of $1 million.

Channel Inventory Challenges

Channel inventory increased slightly to 51 days, still below the target range of 70 to 75 days, indicating ongoing challenges in inventory management.

Tariff Uncertainty

Ongoing tariff discussions create uncertainty, although the direct impact on supply chains has been minimal so far.

Company Guidance

During the Silicon Labs Second Quarter Fiscal 2025 Earnings Call, the company provided guidance indicating strong financial performance and growth prospects. Revenue for the June quarter reached $193 million, representing a 9% sequential increase and a 33% year-over-year rise. The Industrial and Commercial business contributed $110 million, up 14% sequentially and 25% annually, driven by electronic shelf labeling and smart metering projects. The Home & Life segment generated $83 million, marking a 2% sequential and 45% annual increase, largely due to growth in medical customer designs. Gross margins improved, with GAAP at 56.1% and non-GAAP at 56.3%, both above the previous quarter's midpoint guidance. Looking ahead, Silicon Labs anticipates September quarter revenue between $200 million and $210 million, with a projected year-over-year growth rate of 23% and a sequential increase of 6%. The company expects gross margins to range from 57% to 58%, reflecting continued strength in industrial applications. Silicon Labs remains focused on managing operating expenses, with GAAP operating expenses forecasted between $130 million and $133 million, and non-GAAP expenses between $107 million and $110 million. GAAP loss per share is anticipated to be between $0.60 and $0.20, while non-GAAP earnings per share are expected to be in the range of $0.20 to $0.40.

Silicon Laboratories Financial Statement Overview

Summary

Silicon Laboratories faces challenges in revenue generation and profitability, as indicated by declining income statement metrics. The balance sheet is strong with no debt and a robust equity position, which provides stability and reduces financial risk. Cash flow metrics highlight areas for improvement, particularly in generating positive free cash flow. Overall, while the company has a solid financial base, it needs to address profitability and cash flow generation to enhance its financial health.

Income Statement

Neutral

Silicon Laboratories has experienced declining revenue over recent years, with a significant drop from $1.02 billion in 2022 to $584 million in 2024, representing a negative trend. The gross profit margin has also decreased, indicating pressure on profitability. The company has reported negative net income and EBIT margins, highlighting challenges in maintaining profitability.

Balance Sheet

Positive

The balance sheet reflects a strong equity position with no total debt in 2024, which is noteworthy for financial stability. The equity ratio has improved, indicating a solid financial foundation. However, the decrease in total assets over time suggests potential challenges in asset management. Overall, the company's low leverage is a positive aspect.

Cash Flow

Neutral

Cash flow analysis shows negative free cash flow in the most recent year, which is concerning. The operating cash flow to net income ratio indicates inefficiencies in converting sales into cash. Despite these issues, the company has maintained a reasonable cash balance, supporting liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	703.20M	584.39M	782.26M	1.02B	720.86M	886.68M
Gross Profit	386.42M	312.19M	460.59M	642.56M	425.39M	527.53M
EBITDA	-54.44M	-104.92M	46.09M	175.85M	32.04M	-43.28M
Net Income	-104.61M	-191.01M	-34.52M	91.40M	-71.60M	12.53M
Balance Sheet
Total Assets	1.22B	1.22B	1.44B	2.17B	2.96B	1.99B
Cash, Cash Equivalents and Short-Term Investments	415.54M	382.16M	439.22M	1.19B	2.04B	724.68M
Total Debt	0.00	15.55M	64.83M	529.57M	450.60M	563.42M
Total Liabilities	159.99M	142.65M	234.37M	764.42M	745.87M	793.65M
Stockholders Equity	1.06B	1.08B	1.21B	1.41B	2.21B	1.20B
Cash Flow
Free Cash Flow	75.07M	-25.66M	-52.63M	45.28M	-129.02M	115.30M
Operating Cash Flow	94.79M	-13.91M	-30.35M	71.81M	-100.44M	135.72M
Investing Cash Flow	-22.04M	113.12M	469.81M	240.54M	2.27B	-361.01M
Financing Cash Flow	868.00K	-45.10M	-711.87M	-887.05M	-1.30B	200.87M

Silicon Laboratories Technical Analysis

Technical Analysis Sentiment

Positive

Last Price133.14

Price Trends

50DMA

138.16

Negative

100DMA

124.39

Positive

200DMA

125.53

Positive

Market Momentum

MACD

-3.02

Positive

RSI

51.12

Neutral

STOCH

66.86

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 133.14 is below the 20-day moving average (MA) of 134.37, below the 50-day MA of 138.16, and above the 200-day MA of 125.53, indicating a neutral trend. The MACD of -3.02 indicates Positive momentum. The RSI at 51.12 is Neutral, neither overbought nor oversold. The STOCH value of 66.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLAB.

Silicon Laboratories Risk Analysis

Silicon Laboratories disclosed 37 risk factors in its most recent earnings report. Silicon Laboratories reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Silicon Laboratories Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYNA	61 Neutral	$2.62B	14.47	-3.34%	―	11.98%	-138.59%
SMTC	60 Neutral	$4.57B	―	-93.41%	―	13.83%	88.14%
Sector *	57 Neutral	€1.69B	12.19	1.59%	3.67%	2.96%	-106.86%
SLAB	57 Neutral	$4.29B	―	-9.71%	―	29.66%	47.97%
POWI	55 Neutral	$2.59B	78.49	4.68%	1.76%	7.16%	-21.24%
SITM	55 Neutral	$5.63B	―	-9.17%	―	65.12%	15.46%
ALGM	53 Neutral	$5.75B	―	-6.75%	―	-18.82%	-195.20%

* Technology Sector Average

Performance Comparison

SLAB

Silicon Laboratories

133.14

28.72

27.50%

POWI

Power Integrations

47.26

-17.00

-26.46%

SMTC

Semtech

50.52

14.56

40.49%

SYNA

Synaptics

68.03

-8.46

-11.06%

SITM

SiTime Corporation

226.74

86.88

62.12%

ALGM

Allegro MicroSystems

31.10

5.98

23.81%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 13, 2025