What had already been a fairly dodgy year for semiconductor stocks has managed to get worse in the past three months or so. And though Intersil's (NASDAQ:ISIL) stock has done reasonably well relative to its peer group, I imagine there's some frustration out there among shareholders who see a disconnect between the company's performance and that of its stock.

Fortunately, the financial performance continues to come along reasonably well for the analog-chip company. Revenue rose 35% on an annual comparison and 5% on a sequential basis, despite some softness in the computer segment (which makes up nearly one-fourth of sales) and some ripples in the consumer market.

Margins, though, require a bit more explanation. While gross margins improved annually and sequentially no matter how you slice them, operating margin was down a bit sequentially on a GAAP basis, but up slightly on a non-GAAP basis. Since I think stock compensation expense is "real" -- and a meaningful part of the difference -- I'd say that margins weakened just a bit.

The basic underlying story at Intersil really hasn't changed much. The company is aggressively moving into higher-end applications for its chips and seeing a boost in gross profits as a result. What's more, the company has been very active in new product introductions in the first half of 2006, and there's at least the possibility that better second-half demand for chips for LCD TVs and next-gen DVD players will help results.

It's also hard not to be impressed with the breadth of possible product and market opportunities. In handheld power alone, the company deals with names including Motorola (NYSE:MOT) and Siemens (NYSE:SI), and that's just a modest niche. Everything from handheld games to voting machines to rice cookers use analog chips today, and I think it's fair to say that Intersil has a wide range of potential addressable markets.

Of course, Linear Technology (NASDAQ:LLTC), Maxim (NASDAQ:MXIM), MicrochipTechnology (NASDAQ:MCHP), and Microsemi (NASDAQ:MSCC) won't just roll over and play dead. What's more, I don't see Intersil as the best value in the group, even though it's likely to post the best growth. But each Fool needs to make his or her own decision, and if you're comfortable paying up for growth, Intersil could be an interesting play when the market eventually regains its love for tech stocks.

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Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).