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"** Jefferies sees semiconductor equipment sector poised for solid Q1 performance with robust orders and optimism for
continued growth, despite slight demand softness in automotive and industrial markets.
Jefferies favors Dutch ASML ASML.AS , ASM ASMI.AS , and Swiss VAT VACN.S with "buy" recommendation for robust Q1
orders on strong DRAM demand and positive 2024 outlook, reinforcing sector confidence.
Also spotlights Alphawave AWE.L and Aixtron AIXGn.DE as top small-midcap choices with "buy", expecting strong Q1
order intake and resilience in tech advancements. **"
From Thomson Reuters.
Yes you could be right there. The X330 has CoWoS packaging (as will the X340) but the mention of that in relation to the Nvidia chips could just mean like similar to how they have CoWoS on the Nvidia chips. It's vaguely worded as well as being a translation from Korean.
Hi BlueRaphus - I read it that way as X330 being used on Nvidia's chips the first time around and got mildly excited! However having another read I think the article is referring to the Chip-on-wafer-on-substrate (CoWoS) technology being used in Nvidia chips - not the X330 which would be a discrete chip made/designed by Sapeon.
Curious as to why neither AWE nor Sapeon have issued a press release regarding the deal that was done in February. The fact that it is on the Korean ELEC website presumably suggests it's not confidential? Perhaps at $44 million value it's small fry news... Still every little bit counts. Interesting mention of the X330 being used in Nvidia's A100 & H100 chips. Could the X430 wind up being used on future Nvidia chips?
Link to that article
https://www.thelec.net/news/articleView.html?idxno=4787
59.6 billion South Korean Won deal apparently - think that's c$44m USD?
Just spotted this news item. Could be the reason for the rise today. AI chip firm Sapeon will collaborate with design house Alphawave Semi to develop its Gen 3 AI chip, X430,
Hi Awave,
At this present stage we only know what you already know and that is they plan to launch this year. I'm hoping that they will have something to say or reveal at the next trading update later this month as to the progress they have made.
As you probably know, the Banias labs acquisition came with a non-binding agreement with a hyperscaler whereby if these Opto-electric products pass all the necessary qualification trials (which by now might already be largely complete), these products should in the production phase for delivery sometime during this year. In the Banias Labs acquisition announcement back in October 2022, the expectation seems to be that they should be able to sell a minimum of $300m as the sales ramp up over the next several years. It also mentioned that AWE would issue warrants to to the hyperscaler up to 2.5% of the issued share capital up to a maximum of $700m in sales. It is however a non-binding agreement and so if these products don't deliver on expectations there is the risk of pull out.
Investor relations told me that while these products are initially intended for the hyperscaler with whom they have the agreement they are standard products that will also be available to other hyperscalers and data centre operators. The company have also engaged with key module makers which is creating opportunities with other customers in the opto-electric segment. The product range will include not only DSP transceivers of both PAM4 and coherent but also Active Electrical Cables and Active Optical Cables as well as other types of opto-electric products. Incidentally, these products are expected to generate high gross margins in the range of 60 to 70%.
Interestingly, AWE issued a press release on Friday regarding a collaboration with Innolight where the intention is to implement their PCIe technology IP into Innolight's optic products. Whilst Innolight are a Chinese producer, they are nevertheless the market leading producer of DSP transceivers globally. The competition is stiff though as Innolight announced a similar collaboration with Marvell at the same time.
Hi BlueRaphus/Semi interested/All,
Any one has idea about the LPO product which they are gonna launch in FY-24 (IP got from Banias lab).
Thanks in advance
Previous years have been at the end of April so would expect it about then.
On the website it shows 16th April for 2024 Q1 trading update so if your planning to buy before any results you have a couple more weeks, GL all
I may have missed the announcement. Is there a date for the FY23 results? My plan is to buy in the day before. Let’s hope we don’t have the accounting mess we suffered last year.
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