Stock of the Day: InvenSense

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics relating to their 10-Bagger portfolio.

Yesterday, investors saw some earnings misses from some very prominent companies. InvenSense, however, was one company that appeared to deliver positive results. Its earnings met expectations, and the company also foresees a 28% increase in revenue for next quarter. Smartphones now make up 75% of InvenSense's revenue, and it's the standard for Google's Android operating system. InvenSense continues to invest in new products to stay ahead of competitors like STMicroelectronics (Nasdaq: STM  ) and MEMSIC. In fact, it is seeing excellent adoption of its 6-axis sensors. With the news, shares look oversold here and very attractive, especially as InvenSense goes after the fitness, image stabilization, and industrial markets. InvenSense might be a compelling opportunity for some investors.

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John Reeves owns shares of Google. David Meier owns no shares in any of the companies mentioned. The Motley Fool owns shares of Google, InvenSense, and Qualcomm. Motley Fool newsletter services recommend Google. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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  • Report this Comment On July 30, 2012, at 9:26 PM, ralphrides wrote:

    Does anyone know if Apple will use the INVN chips in it's new iPhone 5? Rumor has it the new iPhone is thinner, has a larger display and uses less power. Seems like they are forced to use the lower power INVN chip set?

  • Report this Comment On September 17, 2012, at 4:35 PM, ROEoutshinesGOLD wrote:

    @ ralphrides

    That is an excellent question, (Ralph?).

    I certainly don't know yet.

    The iPhone 5 has been announced at this point in time, and will ship on the 21st of this month (September, 2012).

    I find your comment an interesting speculation of a potential reason for Apple to switch away from STM to INVN's motion sensors because of a (an alleged) gain in power efficiency.

    I will sincerely appreciate if you could share some links / resources that may have brought you to your aforementioned conclusions on power efficiency.

    Thank you for sharing your questions / ideas.

  • Report this Comment On September 17, 2012, at 6:38 PM, ROEoutshinesGOLD wrote:

    Perhaps you've seen an article like the one linked to below (in support of your original inference)? :

    (link #1) MEMS-process-place-Invensense-at-the-top-in-6-axis-motion-sensing

    If the direct (provided above) link doesen't work (gave me problems). Try the Google search link, below:

    (link #2) blogs%2Fother%2F4390199%2FPackaging--low-power---custom-MEMS-process-place- Invensense-at-the-top-in-6-axis-motion-sensing

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