Should Silicon Labs' Strong Q2 Growth and PSA Level 4 Milestone Matter for SLAB Investors?

• In early August 2025, Silicon Labs reported strong sequential and year-over-year revenue growth for the second quarter and set third-quarter revenue guidance between US$200 million and US$210 million, alongside narrowing net losses compared to the prior year.
• The company also achieved a major milestone with its Series 3 SoC attaining the world’s first PSA Level 4 security certification, further cementing its role as a technology leader amid heightened global regulatory demands for device security.
• We'll examine how Silicon Labs' groundbreaking security certification could influence its investment narrative and prospects in the expanding IoT landscape.

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Silicon Laboratories Investment Narrative Recap

To be a shareholder in Silicon Labs, you need to believe in its ability to sustain growth in the rapidly expanding IoT market through technological leadership and successful customer adoption of its next-generation secure platforms. Recent quarterly results, featuring higher revenue and improved net losses, appear to reinforce the existing catalyst of large customer ramps and design wins, while the most immediate risk, ongoing competition and pricing pressure, remains unchanged and material.

The announcement of PSA Level 4 security certification for Silicon Labs' Series 3 SoC platform aligns closely with growing regulatory requirements, enhancing the company's differentiation as customers and governments demand higher security in connected devices. This certification supports Silicon Labs' push into high-value projects, linking directly to its catalyst of capturing premium market share through innovation.

Yet, as adoption of secure platforms accelerates, one emerging risk for investors to watch is the potential for intensifying pricing pressure in the wireless IoT market, since...

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

Silicon Laboratories is projected to reach $1.2 billion in revenue and $13.9 million in earnings by 2028. This outlook assumes a 19.1% annual revenue growth and a $118.5 million increase in earnings from the current level of -$104.6 million.

Uncover how Silicon Laboratories' forecasts yield a $150.44 fair value, a 20% upside to its current price.

Exploring Other Perspectives

Community fair value estimates for Silicon Labs range from US$78.94 to US$150.44, based on two independent perspectives from the Simply Wall St Community. Against this backdrop, accelerating competition and evolving industry standards could influence your expectations of future returns, making it important to review a range of investor views.

Explore 2 other fair value estimates on Silicon Laboratories - why the stock might be worth as much as 20% 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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