Silicon Labs price target raised to $155 from $136 at Stifel

Stifel analyst Tore Svanberg raised the firm’s price target on Silicon Labs to $155 from $136 and keeps a Buy rating on the shares. The analyst believes the most attractive semiconductor stocks heading into 2024 are those with an “ideal mix” of having already seen a correction, a strong balance sheet, and ties to stronger secular trends, particularly artificial intelligence. The “Magnificent 7” stocks in Stifel’s coverage with this mix are Credo Technology (CRDO), Macom (MTSI), Marvell (MRVL), Monolithic Power (MPWR), Power Integrations (POWI), SiTime (SITM) and Silicon Laboratories (SLAB), the analyst tells investors in a research note. The firm says Nvidia (NVDA) is its new “best idea” for AI and accelerated compute. While it continues to view AMD favorably, Stifel believes Nvidia’s valuation “presents a compelling opportunity ahead of the next phase of the company’s AI cycle, software and services.” IPG Photonics (IPGP) is its favorite 2024 SMID-cap idea.