Data Center Driving IDT Ahead Of New Launches And Revenue Opportunities

While it may just be a slowdown within a bullish up-cycle, many segments of the semiconductor industry have gotten more challenging recently. Investors have gotten nervous about volume growth in smartphones, particularly on the high end, and data center and communications spending has been slower to pick up than expected. Those are all key markets for Integrated Device Technology (or "IDT") (IDTI), but the company is leveraging new product cycles to continue to generate good growth.

Although valuations are generally pretty high around the semiconductor space, there does still seem to be some opportunity left for IDT to go higher, particularly if the strength in computing continues, and the company sees more growth in communications and consumer markets. I would also note that although IDT is probably close to the limits of what it can achieve for near-term margin leverage, the accretion potential to an acquirer makes this a serious candidate to be bought out.

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Data Center Driving IDT Ahead Of New Launches And Revenue Opportunities