Institutional Investors Show Confidence in Silicon Laboratories Stock

Shares of semiconductor firm Silicon Laboratories have demonstrated stability following a solid quarterly earnings report. The company's latest financials have attracted increased buying activity from major institutional players, even as analyst sentiment on the stock remains mixed.

On November 4, Silicon Laboratories released its results for the third quarter of 2025. The company posted revenue of $206 million, a figure that came in just ahead of the $205.04 million consensus estimate among market analysts. On an adjusted, non-GAAP basis, earnings per share reached $0.32, surpassing expectations by two cents.

This revenue strength was broad-based, driven by growth in both of the company's core segments:
* Revenue from the Industrial & Commercial segment increased by 22% to $118 million.
* The Smart Home & Life segment saw even stronger growth, advancing 26% to $88 million.

It is important to note that under standard GAAP accounting, the company reported a loss per share of $0.30. The GAAP results also showed a negative return on equity of 6.04% and a net margin of -11.58%.

Should investors sell immediately? Or is it worth buying Silicon Laboratories?

Major Funds Increase Their Holdings

Recent regulatory filings reveal a notable rise in institutional investment during the last quarter. JPMorgan Chase & Co. significantly boosted its stake by 51.6% in Q2, bringing the total value of its holdings to over $25 million. Other investors, including Cooper Financial Group and the State of Wyoming, also modestly increased their positions. This collective activity points to growing conviction among sophisticated market participants.

Divergent Analyst Views and Forward Guidance

Market experts are not aligned in their assessment of the equity's prospects. Morgan Stanley reduced its price target from $157 to $144 while maintaining an "Equal Weight" rating. In contrast, Stifel raised its target to $165. KeyBanc Capital Markets reaffirmed its "Overweight" recommendation. Depending on the survey, the average price target falls between $144.90 and $153.43, with a consensus rating hovering between "Hold" and "Buy."

Looking ahead, management provided guidance for the current fourth quarter. The company anticipates revenue in the range of $200 million to $215 million. Adjusted earnings per share are projected to be between $0.40 and $0.70.

The stock was last trading near $137. With a beta of 1.56, it exhibits higher volatility than the broader market average.