Integrated Device Technology  is trading at about $20, down  $2 due to the loss of one of its cell phone chip customers. Although the company met earnings estimates of $.36 for the June quarter and beat revenue estimates slightly, the loss of this customer lowers 2017 estimates (year end March 2017) from $1.51 to $1.41.

The customer, Huawei, chose to develop its own chip in house. This is always a risk for chip companies with large customers. However management’s bullish forecast for the ZMDI auto business, the reason we initially became interested in the stock, is encouraging. Over the next year the lost revenue will be replaced with equally profitable new orders.

At $20 a share the stock is at my original $20 recommendation price. Although the new target of $27 is lower than my previous $44 target, the stock still offers great value for investors to profit from the development of chips for the Internet of Things.