Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Volterra Semiconductor (NAS: VLTR) fell 10% today on concerns about a product delay.
So what: Inphi (NYS: IPHI) cut its outlook yesterday on concerns that Intel's (NAS: INTC) Romley chip for servers would be delayed. This affects Volterra because the company makes voltage regulation chips, which should see a boost in demand due to Romley when it is released.
Now what: This delay may have a short-term affect on Volterra's results but after soundly beating earnings estimates in the second quarter I'm not too worried. Romley hasn't been canceled and should still have a positive impact on results in the future. I think this sell-off is overdone for Volterra, and it presents a nice buying opportunity in a company that is expected to grow earnings quickly over the next year.
Interested in more info on Volterra Semiconductor? Add it to your watchlist.
At the time thisarticle was published Fool contributor Travis Hoium owns shares of Intel and has sold put options in Intel. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.The Fool owns shares of and has bought calls on Intel. Motley Fool newsletter services have recommended buying shares of Intel. Motley Fool newsletter services have recommended creating a diagonal call position in Intel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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