Shares of QuickLogic Corp (NASDAQ:QUIK) have lost almost 40% year to date.

The company supplies niche hardware and critical infrastructure in the FPGA (Field-Programmable Gate Array) market, which is being driven by "Cold War 2.0 and the weaponization of outer space," according to Northland Capital Markets.

Analyst Gus Richard initiated coverage of QuickLogic with an Outperform rating and a price target of $11.60.

The QuickLogic Thesis: FPGAs are used in a wide variety of applications and the market for these is not "well established," Richard said in the initiation note.

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"With the start of a new cold war, military spending is increasing, and space defense budgets are increasing where radiation hardening, and a secure supply chain are required," the analyst wrote.

QuickLogic’s serviceable addressable market is estimated at $422 million and is likely to expand at a CAGR of 9%, he further stated.

QUIK Price Action: Shares of QuickLogic had risen by 1.6% to $8.22 at the time of publication Tuesday.

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