QuickLogic Corp. (QUIK) is a leading producer of field-programmable gate array (FPGA) semiconductors, founded in 1988 and public since 1999. Unlike most semiconductors, FPGAs can be manufactured for a specific application like cybersecurity, then upgraded in the field when a new cybersecurity threat emerges, writes Michael Murphy, editor of New World Investor.
After many disappointing years and setbacks – including winning contracts for consumer products that never shipped or failed, like the tiny video projector that attached to an iPhone – their outlook has dramatically improved. There is a little-noticed renaissance of programmable logic underway. Product life cycles are shortening as competitors quickly introduce new features to attract customers.
The ability to respond by reprogramming an FPGA instead of designing a whole new product from scratch saves time to market and millions of dollars. FPGAs extend the use cases for designs and allow companies to optimize products for a customer's different workloads and algorithms.
I expect the FPGA market to grow at a 17% annual rate through 2030. The military and aerospace segment will grow even faster – 75% of their programs already use FPGAs, which account for 30% of their microelectronics spending.
QuickLogic CEO Brian Faith was appointed in June 2016. Over the last 10 years, he has done a brilliant job of repositioning the company for rapid growth. He led the development of Australis, a software system to design FPGAs and rapidly move designs to different semiconductor fabrication processes, including at Taiwan Semiconductor Manufacturing (TSM), GlobalFoundries Inc. (GFS), and Intel Corp. (INTC).
In 2026, I expect to see several consumer product announcements using QuickLogic FPGAs, including new Samsung cell phones. I expect the FPGA market to grow 17% a year to 2030, with QUIK's radiation-hardened technology being especially successful in military and aerospace applications.
Brian also keeps a tight rein on expenses and the firm's financial model has high operating leverage. While gross profit increased 189% from 2020 to 2024, operating expenses fell 10%. As more licensed IP designs move into production and pay royalties, profits will continue to increase much faster than expenses. They already show non-GAAP profitability and positive cash flow.
Finally, QUIK is flying under the radar. Only two Wall Street analysts publish estimates on the stock. I expect 2026 revenues to grow 75% to $25 million, kicking off several years of rapid revenue growth, and believe QUIK can 10x from current levels.
Recommended Action: Buy QUIK.
