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ZTE selects IDT RapidIO and more +4

News agencies are reporting that ZTE has selected RapidIO 10xN solutions from Integrated Device Technology for its wireless base stations.  While IDT always has a long list of innovations and developments, which recently includes a collaboration with IBM, and distributed power architecture win with MSI, I find this announcement particularly noteworthy.  The reason is that this is the same family of solutions that was dropped by Huawei, as annuounced with the last earnings report. Though Huawei leads, carrier communications make up more than half of ZTE's business, and it has moved up to third, from fourth in global market share in the first half of this year. This announcement goes a long way towards alleviating concerns that RapidIO problems would become more widespread for IDT.

IDTI has seen a very nice 20%+ bounce since the opportunity I identified in conjunction with the last earnings report at the beginning of August.  The next one is due in about 3 weeks, and the stock has been quite volatile surrounding earnings.  Though new memory solutions could be a big revenue driver going forward, I'm not inclined to take chances on the stock at this price point in the current market, even though I continue to like the business long-term.