Silicon Laboratories stock soared after Texas Instruments announced a $7.5 billion acquisition, paying $231 per share. The deal combines TXN’s analog and processing strengths with SLAB’s wireless expertise. TXN plans to leverage its wafer fabs and expects $450 million in annual revenue within three years.

Following the acquisition, SLAB’s stock price surged almost 49%, exceeding prior highs. Year-to-date gains reached 56%. The stock currently trades at a premium of 212.36 times forward earnings. Silicon Labs reported strong revenue growth in Q4 2025, with full-year revenues up 34% year-over-year.

Analysts predict significant EPS increases for fiscal 2026 and 2027. However, following the acquisition announcement, SLAB experienced analyst downgrades to a “Hold” rating. SLAB has already surpassed average price targets, with a consensus “Hold” rating from analysts.

Read more at Yahoo Finance: Is It Too Late to Buy Silicon Labs Stock?