Seeking Alpha: LSI Still Undervalued, As It Shows Hints Of What Lies Ahead

It was six months ago to the day that I wrote about the potential for LSI (LSI), highlighting both the upside if the company executed on opportunities in flash, networking, and storage/servers but also the risk that the path to prosperity would have some bends and potholes. That's proven more or less true so far, as the absolute return over the past half-year (barely positive) is well below that of rival Marvell (MRVL) and the overall Nasdaq composite, but second quarter earnings show some encouraging results.

Provided that the PC market doesn't get even worse (and/or that Marvell doesn't grab even more share), I believe there's still a case to make for LSI as a $9 to $10 stock. While the real ramp in revenue growth and margins isn't likely until 2014, improving sentiment towards chip stocks (at least those outside the wireless space) could pull the stock along in the meantime.

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LSI Still Undervalued, As It Shows Hints Of What Lies Ahead