Silicom (SILC, Financial) has announced a significant milestone, having secured a major contract for its FPGA Smart NIC from a prominent North American cloud service provider. This new client, part of the Fortune 500, selected Silicom after an extensive year-long evaluation process. As part of the agreement, Silicom is currently tailoring its standard card model to meet the specific demands of the client. Production is set to commence, with the first shipments expected by late 2025.
The company plans to increase production throughout 2026. Once the project reaches its full operational capacity, Silicom anticipates that the revenues from this Design Win will amount to approximately $4 million annually.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Silicom Ltd (SILC, Financial) is $20.00 with a high estimate of $20.00 and a low estimate of $20.00. The average target implies an upside of 33.33% from the current price of $15.00. More detailed estimate data can be found on the Silicom Ltd (SILC) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Silicom Ltd's (SILC, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Silicom Ltd (SILC, Financial) in one year is $17.24, suggesting a upside of 14.93% from the current price of $15. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Silicom Ltd (SILC) Summary page.
