Silicon Laboratories (SLAB) stock surged 5.02% on Wednesday as the company reported solid fourth quarter results and provided an encouraging outlook, driven by strong design win momentum and new product ramps.

The semiconductor company reported revenue of $166 million for the fourth quarter, up 91% from the trough in Q4 2023 and in line with its guidance. While annual revenue declined 25% in fiscal 2024, the company showed consistent improvement throughout the year as customers depleted excess inventory and demand began to recover.

The key highlights of Silicon Labs' performance and outlook include:

• Strong growth in the Home & Life business, driven by new program ramps in medical applications like continuous glucose monitoring (CGM). CGM is expected to contribute nearly 10% of revenue in the next 12-18 months.
• Significant design win momentum in areas like smart metering, with the company securing more 154 design wins since the release of the Matter spec than in the prior five years combined.
• Positive reception and strong design win pipeline for the new 917 Wi-Fi device showcased at CES, which is expected to contribute to revenue growth in 2025.
• Q1 2025 revenue guidance of $170-$185 million, implying 67% year-over-year growth at the midpoint, driven by new design win ramps across various applications.

According to CEO Matt Johnson, the majority of end customers have worked through excess inventory, and bookings continue to improve, indicating progress toward a cyclical recovery. Johnson expressed confidence in driving growth throughout 2025, independent of a broad-based demand recovery, due to the company's share gains with its industry-leading Series 2 products.