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ALAB closed up another 20% today mkt cap $12.96bn and price/sales ratio 112x. AWE 2023 sales are expected to be >3x that of ALAB yet valuation languishes. Not saying should be valued at 112x but c10x would be reasonable given current and projected growth rates
This isn't just disparity, this is LSE disparity!
Management needs to initiate NYSE listing ASAP!
ALAB currently trading at a Revenue multiple 15x higher than what LSE investors are paying for AWE.
PS @BlueRaphus - you were right in your first estimation of valuation of ALAB - I think the share count is ~153m (going off my trading app), and as of yesterdays close it IS valued at over $9bn so currently on >80x price /sales ratio as you originally estimated....compared to AWE 4x p/s ratio - bonkers!
Absolutely BlueRaphus. ALAB Valuation is bonkers but seems market is going crazy for anything semiconductor/AI related at the moment. That said AWE trading at around 4x price/sales ratio seems like a huge disconnect to valuations across the pond - hopefully a re-rating will come given the prospects here but LSE generally is stuck in the doldrums.
Another correction. Sorry!
Astera Labs total shares outstanding following today's IPO will be 135.7 million which at $61 per share gives a market value of nearly $8.3 billion. And thus based on $116 million revenue gives us a P/S of 71.4. Alphawave's equivalent price on that ratio would be £26. So still absolutely bonkers. I should not be surprise to see ALAB price take a tumble in the coming days because if not, it would mean the world doesn't want to make sense to me any more...
CORRECTION.
I made the mistake of assuming that the 19.8 million shares would be the total shares in issue. But in fact, having checked the SEC website, it is more like 155.5 million shares. Assuming I've got that right, this therefore puts a market cap value on Astera Labs at a crazy $9.3 billion. It means a P/S ratio of more than 80! Which is completely bonkers because if AWE was priced on that ratio the share price would be something like £29!
With 19.8 million shares at current price around $61 puts the market value at $1.2 billion. As Jupiter31 mentioned they generated revenue of $115 million for 2023. (Not sure which month their financial year ends). This gives them a P/S ratio of 10.6
Alphawave are currently valued at almost $1.6 billion and in next month's results will likely report revenue of somewhere between $340 million and $360 million. At midpoint of this revenue gives a P/S ratio of 4.6.
If Alphawave were to be priced at P/S of 10.6 we'd be at £3.86.
Astera Labs appear to have a slight different approach with their connectivity solutions. I'm no expert on this, but for example, one of their key products are high speed retimers - these devices modulate the signals by restoring and reshaping them as they pass through the link. Essentially they are mitigating the signal degradation that you get due to attenuation, jitter and noise. Whereas Alphawave have products that can achieve the same (or better?) mitigation of the signal without having to use a retimer such as in this press release:
https://awavesemi.com/press-release/nubis-communications-and-alphawave-semi-showcase-first-demonstration-of-optical-pci-express-6-0-technology/
It's worth remembering that Astera Labs have been around awhile and are not suddenly new competition for Alphawave to contend with. One aspect of Astera labs that is attractive is that they are in partnership with Nvidia for some of their products. It will be interesting to monitor them in the coming months and years to see how they do.
It will also be interesting to find out what Tony Pialis might have to say about them at the next investor call on results day sometime next month, as I'm sure one or two of the analysts on the call will bring up the question.
Which platforms offer the stock at the moment? I can’t see it on HL or eToro
ALAB SP soaring on debut - trading at ~$60 (+>65% from float price!) - as I write this!! Perhaps AWE should get a secondary listing on Nasdaq!
here's link to breaking news bulletin from Marketwatch
https://www.marketwatch.com/story/astera-labs-stock-soars-as-investors-cheer-the-debut-of-a-new-ai-chip-play-34443850?mod=home-page
Astera Labs plays into the artificial-intelligence craze through its work in chip connectivity. There’s been a proliferation of AI chips recently, but Astera Labs says customers won’t be able to get the most out of them without technology that helps AI chips connect and communicate with other aspects of a data center.
PS interviewer asks some probing questions around the audit debacle last year and the subsequent suspension of the shares from trading - interesting again to hear the CEO response to this and steps being taken to avoid this happening again.
Came across this interview with Tony Pialis, its from 2023 so not sure if posted on here previously - but interesting nonetheless especially to hear him talk about his growth ambitions for the company...
https://www.fabricatedknowledge.com/p/an-interview-with-tony-pialis-ceo
You've lost me ...Astera (ALAB) is quoted on Nasdaq.com in US dollars, HQ is in Santa Clara California, not sure where you are seeing CAD.
If you look at NASDAQ, it's clealy written "20,85 CAD"
@ design IP. Please explain - why do you say Canadian Dollars $?
Alphawave reports in USD ....
Astera is a Nasdaq IPO so will also be in USD
All these informations are correct... warning, it's CAN$!!!
More info on Astera IPO due today...
Wall Street is about to get a new way to play the intersection between chips and artificial intelligence.
Astera Labs priced its initial public offering late Tuesday at $36 a share, well above its target range, which it boosted Monday from $27 to $30 to between $32 and $34 a share. With the company intending to offer 19.8 million shares, it will raise $712.8 million through the IPO. Shares are expected to start trading Wednesday on the Nasdaq under the ticker symbol “ALAB.”
The company sees big opportunity in chip connectivity, which could prove all the more essential in the AI era. Astera Labs acknowledges that AI chips are great at what they do but says they need to be able to connect and communicate with other things in the data center for maximum efficiency.
*correction - valuation of c$4billion estimated (not $m!) - slight difference!
Astera Labs is due to IPO on Nasdaq this week (Weds) - be interesting to see how it does in the US I think a valuation of c$4m being suggested... if so makes Alphawave look cheap at current levels!
Semiconductor connectivity firm Astera Labs (ALAB), which is slated to go public on Wednesday, has boosted the size of its upcoming offering amid increased demand for all things artificial intelligence.
The company now expects to sell 19.8M shares between $32 and $34 each, up from a prior expectation of 17.8M shares between $27 and $30 apiece, the company said in a filing on Monday.
At the high-end of the range, Astera, who counts Intel (NASDAQ:INTC), Nvidia (NVDA) and AMD (AMD) as customers and Intel as a backer, would raise $673.2M.
Astera will trade on the Nasdaq under the ticker symbol "ALAB."
Reports emerged in October that Astera was looking to go public in 2024.
The company generated $115.8M in revenue in 2023, up from $79.9M in 2022. However, it still incurred a net loss last year at $26.3M, down from $58.3M in 2022.
Morgan Stanley (MS) and JP Morgan (JPM) are the lead underwriters for the IPO, with Barclays, Deutsche Bank, Evercore ISI and Jefferies among the other Wall Street firms listed on the filing.
Astera Labs announced in November 2022 that it raised $150M in a Series-D funding round led by Fidelity Management, which valued the company at $3.15B. Fidelity was joined by other existing investors, including Atreides Management, Intel Capital and Sutter Hill Ventures.
Does anyone have an idea please of why Alphawave shares have dropped over 10% this past week?
It's had a bull run with approximately 72% increase since January. So it's taking a breather along with all the other "AI" stocks which have declined by similar amounts in recent days. The drops are more notable from around the time of the US markets opening time. Even Nvidia has taken a drop. Nothing to do with the fundamentals of company.
Does anyone have an idea please of why Alphawave shares have dropped over 10% this past week?
They earlier in the week announced their successful first chiplet-connectivity silicon platform on TSMC’s most advanced 3nm process, so I'm confused as to why this wouldn't at least keep the share price where it was at £1.90?
Fibonacci retracement ratios, are 23.6%, meaning sp value of 171. The ratio of 38.2%, would mean a sp value of 159.
AWE, is a strong equity, so I have not looked at the 50% ratio. Most likely a retracement, would fall somewhere between the two values of 23.6%, 171, and 38.2%, 159. DYOR.
20 day moving average at 169.4, tomorrow, and breach of pivot high(174) of negative divergence price bar of 27/2/24, when low price today was 173.60. The high value of the commodity channel index , occured on 27/2/24, making that price bar the pivot, for subsequent price action. A fall in sp, is expected to follow a negative divergence, and it remains to be seen, whether the sp, will retrace to the 20 day moving average, which is expected to provide some support.
Astera Labs appears to be a similar company to Alphawave. It is about to IPO in the US. It will be interesting to see how it gets on.
Today I’ve been mostly reading about Alphawave and it’s successful collaboration with Taiwan Semi. The future looks good.
Totally agree that Alphawave is an undervalued company. I believe much of the discount comes from the market it listed.