This Beaten-Down Chip Stock Just Did Something It Hasn't Done in a Year. Time to Buy?

Impinj reported a weak Q1 (revenue $74.3M; GAAP net loss ≈ $25M, $0.83/sh) but issued a much stronger Q2 outlook that triggered a sharp market reaction. Management guided Q2 revenue of $103M–$106M (about 41% above Q1) and for GAAP net income of $7.6M–$9.1M, driven by record Endpoint IC bookings and easing inventory headwinds. The upbeat guidance sent the stock up roughly 27% since the April 29 release. Despite the rally, the author warns Impinj remains richly valued (~74x forward EPS) and suggests caution on buying immediately. Market impact: the guidance revived investor demand for this beaten-down chip name and signaled improving end-market demand for RFID chips, but lofty multiples temper near-term upside.