Inphi Corp. (IPHI) - Initiating Coverage with Buy Rating

Key Points

• Inphi is market leader in signal integrity solutions for fast-growing data center (server/storage) and cloud computing (communication infrastructure) markets
• Initiation: Buy rating with $22 price target (based on 3.9x EV/2012 sales multiple from semiconductor company regression analysis)
• 40G/100G ports expected to experience significant growth through 2015; Inphi optical amplifiers and drivers well-positioned with highest bandwidth TIAs and lowest power consumption
• Inphi positioned to become market leader in low-power CMOS solutions for 100G Ethernet with development agreement with leading networking OEM
• Market headwinds from mobile traffic and cloud computing growth drive infrastructure upgrade demand

Summary

Initial coverage report on Inphi as market leader in high-speed analog semiconductor solutions for communications and computing. Establishes thesis on 40G/100G optical networking growth tailwind and Inphi's competitive positioning in TIAs, drivers, CMOS CDR solutions.

Source

• File: [I] IPHI_ Needham_initiation21_Dec_2010.pdf
• Location: Dropbox/2. Semi/Networking/Inphi/
• Pages: 36

Related

• _MOC-networking | IPHI | Optical-Networking | Transceivers | Signal-Integrity