Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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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.
Credo has more than 2x the market cap of AWE despite only generating half the revenue. They compete with AWE in the connectivity space but have more focus on AECs (Active Electrical Cables) which amounts to approximately half their revenue. Like AWE, Credo are ploughing back a lot of cash into R&D and are not net profit making. Credo may appear to have a healthy cash balance sheet but only due to having done a recent cash placing. They are in partnership with Effect Photonics for the development of Coherent DSPs but I believe are behind the curve compared with AWE in bringing these to market.
Marvell has a market cap more than 37x greater than AWE’s. They are AWE’s main competitor in terms of data centre connectivity products. Last Thursday was Marvell’s Q4 results which gave a very upbeat performance in the data centre sector. Unfortunately, this was offset by a shockingly downbeat performance in their carrier infrastructure and consumer sectors neither of which AWE compete in so far as I’m aware. That probably explains the market’s reaction to the Q4 results that brought about a more than 11% fall in share price on Friday. Similarly to both Credo and AWE, Marvell are also not currently net profit making. Again, mainly because a large amount of cash is being ploughed back into R&D and product development.
While the two above-mentioned NASDAQ peers have in my view excellent growth prospects, I think AWE’s growth prospects are at least equally as good. As mentioned in my previous post they should be due at some point later this year to announce their first revenues coming from their Opto-electronics range which will include coherent DSPs, AECs and AOCs. While Marvell appear to be slightly ahead of the curve having already brought coherent 800 Gbps DSPs to the market and are introducing 1.6T Gbps DSPs later this year, I suspect that AWE are not too far behind. The revenue stream expected from this is expected to ramp up quite quickly in the following years.
According to a fairly recent Whitepaper from IPnest, in what’s called the High-End interface silicon IP segment, AWE already command a quarter of that particular addressable market. Back in 2021 this segment was valued at about $370 million and is thought will have grown to around $1.4 billion this year. Assuming no increase in market share, this translates to about $350 million of revenue from that segment alone, add to that, revenue from custom silicon, chiplets and the new opto-electronics range, we shouldn’t be surprised if the company up their 2024 year end guidance by a significant amount, hopefully in excess of $400 million. By 2026, the high-end interface IP segment market is forecast to exceed $2 billion. The whitepaper predicts the company’s revenue will be between $500 million and $800 million. Total product revenue is expected to exceed $1 billion. All the above products have high profit margins.
Like the context you put the company in. AWE should move its listing to NASDAQ.
Just over 12 months ago on 24th Feb, Alphawave closed at an all-time low of 89.3p. From that baseline, the share price is up 110.3%. If we take the price of its Peers on that same date of 24th Feb last year and compare with their respective closing price on last Friday, Rambus is up 134.41%, Broadcom is up 126.57%, Credo is up 111.2% and Marvell is up 72%.
So, one can argue that Alphawave has performed equally as well as its peers over this time frame.
Another interesting comparison I like to make is the price to sales ratio (P/S).
If we take Alphawave's 2023 midpoint guidance revenue of $350 million, last price of £1.878, and 727 million shares in issue. We get a P/S ratio of 5.02 which is significantly lower than its peers.
Based on the absolute latest data from the peers last reports and £to$ conversion of 1.287:
Rambus P/S = 15.25. If AWE were trading on this P/S, its share price would be £5.71
Broadcom P/S = 16.94. If AWE were trading on this P/S, its share price would be £6.34
Credo P/S = 19.7, If AWE were trading on this P/S, its share price would be £7.37
And Marvell P/S = 11.86. If AWE were trading on this P/S, its share price would be £4.44.
Taking the average P/S ratio of these four peers, AWE share price would be £5.97.
Even though AWE has been on a price surge since January 17th and risen 72% since and no doubt various technical indicators are currently screaming "overbought", but regardless of whether a price correction is due or not, at this current price of £1.88, it remains significantly cheap compared to its peers. I'm not a technical analysis fan, but I've seen that the future growth indicator on this stock places it at the top end of the growth shares table.
At some point this year, the company are expected to announce its first revenues from its opto-electronics range including coherent DSPs for its hyperscaler with whom it has a non-binding agreement for at least $300 million worth of product sales in the pipeline. All things data centre connectivity product wise have fairly high CAGR expectations over the coming years but I believe the coherent opto-electronic aspect for intra data centre connectivity applications especially so.
He will be back once the short sellers start their magic.
Barcap has gone awfully quiet
The mood music is definitely changing for Alphawave. I can’t remember too many nice reports over the last few years. Motley Fool have come out with positive opinion today.