Alphawave Ip Share Discussion Threads

[indiestu] 26/11/2024 08:03

hTTps://semiconductor.samsung.com/news-events/tech-blog/samsung-foundry-partners-with-arm-adtechnology-and-rebellions-to-develop-an-innovative-ai-cpu-chiplet-platform-ideal-for-modern-ai-datacenters/

[indiestu] 24/11/2024 13:07

Hi waxy. Great question. They claim they are on track to book 1 billion in revenue by 2027. So my target considering this growth rate would be a valuation of 3 x revenue by FY27. 400p ish. However it's unlikely I would sell while they are demonstrating growth. It's going to be interesting when we understand how profitable the new licensing model is. If they begin to generate huge amounts of cash there could be aggressive share buybacks or dividends sooner than expected.

[technowaxy] 22/11/2024 19:40

Hi What is your TP indie Stu, if you don't mind me asking ? Will you bail at 180 if it gets there ?

[indiestu] 21/11/2024 16:31

It's all very quiet here. I'm tempting fate, this could be the ride of our lives when Q4 bookings and FY results come in.

[valhamos] 04/11/2024 09:25

Alphawave gets a lot of mentions in this piece on chiplet interconnects:

[indiestu] 01/11/2024 07:15

hTTps://awavesemi.com/press-release/alphawave-semi-selected-for-ai-innovation-research-grant-from-uk-governments-advanced-research-invention-agency/

[dividevil] 22/10/2024 11:42

It is not really a turnaround situation as such. The "profit warning" last month was mainly about the reduction in the 2024 revenue guidance from 355m to about 320m. The company claims that the merger between Sapeon and Rebellion back in June lost them that portion of the expected revenue as their two customers became one and the newly merged Rebellion consolidated on its contracts. What this Q3 update shows is that the growth in bookings remains consistent and in line with what they have been saying at their capital markets day and investor calls. The H1 revenue of 90m may have looked depressing but they did say at the CDM the revenue would be backend loaded.

[the lockkeeper] 22/10/2024 10:47

The vast amount of trading is showing ad AT trades today The bots are walking it up and will likely walk it down again when they take the profit. Having said that a lot of potential with AWE, I am here for the long term.(just not buying any this week!)

[indiestu] 22/10/2024 10:41

What am I missing here. YOY q revenues doubled and new bookings up by half again. They seem like pretty good numbers to me. Shift to royalties strategy confirmed as working. IP in strong demand. 1 billion revenues by 27. Surely that indicates a turnaround of fortunes from the previous profit warning.

[dividevil] 22/10/2024 09:29

For quarterly updates they have always reported only bookings and design wins with a summary of where the design wins have been secured. This is no different to any of their previous trading updates. They will always report revenue figures every 6 months.The bookings are an indicator of future revenue and given that it is well understood that on average what is reported as bookings translates to revenue about 12 months down the road. The last 12 months of bookings total up to 458m USD which is very much in line with their guidance revenue expectation for 2025 of 450m USD.

[hairybeast] 22/10/2024 09:27

It’s not a quarterly financial report, but a trading update. They don’t provide quarterly revenue figures. Bookings are a forward looking indicator, so the question is the timing of conversion to revenue. They also don’t include (for good reason) the potential chips sales from these deals, which should be substantially more than any design fees/NRE. It will likely take a year or two for these design fees to get fully recognised and a couple of years for chip sales to ramp after that. This is not for the faint hearted, but they have the right technology and the right customers.

[stallone10] 22/10/2024 09:10

Words like strong confidence for 2017 are not fact

[stallone10] 22/10/2024 09:04

Yeah no numbers given that’s telling very telling

[whites123] 22/10/2024 07:00

We tried telling people without such blatant "tipping" to be considered ramping. :-)

Logo Description automatically generated
Q3 2024 Trading and Business Update


· Fourth consecutive quarter of bookings above US$100m

· Continued strength in IP licensing and multiple new chiplet wins including Arm UCIe IP

· Fifth consecutive year as TSMC 2024 OIP Partner of the Year for High-Speed SerDes IP


LONDON, United Kingdom and TORONTO, Ontario, Canada 22 October 2024 - Alphawave IP Group plc (LN: AWE, the "Company" or "Alphawave Semi"), a global leader in high-speed connectivity and compute for the world's technology infrastructure, is pleased to publish its trading and business update for the three months ended 30 September 2024.



New Bookings (US$m)

Q3 2024

Q3 2023

Change

Licence and NRE

93.8

42.9

119%

Royalties and Silicon Orders

10.7

30.1

(64)%

New Bookings

104.5

72.9

43%











































Due to rounding, numbers presented in the table may not add up to the totals provided and percentages may not precisely reflect the absolute figures. There were no new design wins in Q3 2024 or Q3 2023 generated from FSA drawdowns and re-sale licences.



Tony Pialis, President and Chief Executive Officer of Alphawave Semi, said: "For the first time, we have secured over US$100m per quarter in new bookings over an entire year. This is a major sales milestone for the Company as we scale all our revenue streams. In addition to consistent strength in IP licensing and NRE, we also saw repeat and multiple design wins with chiplets leveraging the Arm UCIe IP. We are also pleased to have received the prestigious TSMC OIP Partner of the Year award for the fifth year straight. This is the ultimate validation of our continued technology leadership in connectivity."



John Lofton Holt, Executive Chairman of Alphawave Semi, said: "2024 has been a transition year for the Company, as anticipated. Now this transition is playing out favourably in the numbers. Our continued momentum gives us strong confidence in our mid-term guidance and underpins our ambition for US$1B revenue run rate in 2027."



Business Model Evolution Playing out As Expected: Chiplets Driving Design Wins



As reported in the Half Year 2024 results in September, Alphawave expected to see increased scale and diversification in the business throughout the second half of 2024. Design win activity in the quarter was strong, with five new design wins from new and existing customers who are share leaders in connectivity and compute end markets. These design wins included 4nm and 3nm technology and included high-profile design wins with Arm-based chiplets leveraging UCIe IP. In addition, the Company secured two new designs wins with Samsung foundry, where Alphawave is the leading connectivity provider, and two new design wins with share leaders in the data centre optical connectivity market.

Continued Technology Leadership - TSMC 2024 OIP Partner of the Year



Alphawave Semi held its Capital Markets Day in early June and reiterated the importance of continued and expanded technology leadership in connectivity solutions. A cornerstone of this leadership is the partnership with our foundries - TSMC, Samsung, and Intel. In September, Alphawave was pleased to receive the TSMC 2024 OIP Partner of the Year for High-Speed SerDes IP for the fifth consecutive year.



About Alphawave Semi



Alphawave Semi is a global leader in high-speed connectivity for the world's technology infrastructure. Faced with the exponential growth of data, Alphawave Semi's technology services a critical need: enabling data to travel faster, more reliably and with higher performance at lower power. We are a vertically integrated semiconductor company, and our IP, custom silicon, and connectivity products are deployed by global tier-one customers in data centres, compute, networking, AI, 5G, autonomous vehicles, and storage. Founded in 2017 by an expert technical team with a proven track record in licensing semiconductor IP, our mission is to accelerate the critical data infrastructure at the heart of our digital world. To find out more about Alphawave Semi, visit: awavesemi.com

[indiestu] 22/10/2024 06:19

That's quite the turnaround from half year results.

[valhamos] 18/10/2024 10:01

Alphwave gets a few mentions in this Arm news of how it is driving the growth in Arm-based silicon for the AI datacentre.

[whites123] 10/10/2024 12:02

Revolutionizing High-Performance Silicon: Alphawave Semi and Arm Unite on Next-Gen Chiplets
Alphawave Semi's partnership with Arm marks a major advancement in enabling high-performance technologies for 6G/5G network infrastructure, cloud, and edge applications.

By Shivi Arora, Director, ASIC IP Solutions and Sue Hung Fung, Principal Product Marketing and Management

As 5G wireless communications systems continue to be deployed, enterprises are busy planning for 6G —the next generation of wireless communications set to transform our lives. Poised to merge communication and computing, 6G promises to create a hyperconnected world that blends digital and physical experiences with ultra-fast speeds and low latency as a starting point.

Building on the foundations laid by 5G, 6G will continue supporting improved data latency, security, reliability, and the ability to process massive volumes of data in real-time. It will also challenge what’s possible by bringing new, groundbreaking capabilities to the forefront, including expanded ubiquitous connectivity, integrated sensing and communication, and advanced artificial intelligence.

In today’s technology-driven era, we rely on our handhelds, smartphones, and mobile devices to fulfill day-to-day tasks, most of which are driven by on-device or cloud-based AI and ML. Connectivity and compute power are the most important factors enabling on-cloud large language models (LLMs) to process and respond to human interaction. The communication infrastructure currently operates over 5G networks. It started not long ago with bandwidth in the kilobits per second (Kbps) range in 2G and has now evolved to gigabits per second (Gbps) in 5G. On the horizon, the existing 5G wireless communication infrastructure will soon evolve to 6G, offering bandwidths of terabits per second (Tbps). A much higher network bandwidth is needed with the increasing number of devices and complex AI workloads. Network infrastructure giants are already looking to update their hardware to support speeds 50-100 times faster than 5G, with air latency under 100 microseconds, and even wider network coverage and reliability.

With this new infrastructure for 6G, carrier support and hardware/software support will require new RF designs and chipsets capable of supporting higher communication frequencies, possibly up to 1 THz. Although newer networks may be designed for more data bits per kilowatt of power efficiency, the increase in density, traffic, and processing speeds tends to negate these savings.

The wireless technology trend of the existing 5G network is built around innovation in processors and wireless technology on mobile devices, and in wireless base stations and cells. Base stations are replaced by RUs (radio units), DUs (distributed units), and CUs (centralized units). The radio units manage antennas in real-time through multicore processor chips. The distributed and centralized units provide support for the lower and upper layers of the protocol stack, respectively. These protocol stacks operate on compute chiplets, which are mounted on hardware acceleration cards to handle protocol processing. Radio, distributed, and centralized units need to handle a lot of radio processing and traffic data. With even higher throughput and extremely complex workloads in the new 6G infrastructure, network architecture, software, and hardware accelerator card equipment will need an upgrade or redesign to process and handle much larger amounts of data. The processor compute chiplets on the accelerator cards manage up to dozens of antennas simultaneously and will need to grow in compute power as requirements become more complex with the move to 6G.

To fulfill the needs of this rapidly advancing semiconductor industry, Alphawave Semi is collaborating with Arm on a sophisticated chiplet that uses Arm’s Neoverse Compute Subsystems (CSS). These compute chiplets are vital for supporting the demanding requirements of 6G/5G infrastructure, cloud and edge compute applications and for handling enterprise networking, server, and AI/ML markets. This partnership integrates the silicon-proven IP portfolio from Alphawave with Arm’s Neoverse CSS N3 to handle intensive workload efficiency, performance optimization and power savings in both compute and accelerator chiplets.

The Arm Neoverse ecosystem of hardware and software is targeted for new generations of wireless mobile communications equipment and the wireless infrastructure’;s cloud-based deployment. Software developers continue to port operating systems and tools to support Arm’s Neoverse class compute subsystems. These tools allow developers to scale their code using SVE (Scalable Vector Extension) to different vector lengths, reflecting new or updated hardware architecture, whereas traditional processors only handle vectors of specific widths. Traditional architectures require code to be rebuilt to handle additional vector bandwidth updates. SVE allows scalable vector performance on 5G RAN (Radio Access Network), a wireless communication architecture that uses 5G radio frequencies to provide wireless connectivity to devices. RANs perform complex processing when voice and data are converted to digital signals and transmitted as radio waves to RAN transceivers, to the core network, and onto the internet. The radio spectrum requirements for performance, capacity, speed, and latency will be redefined to support 6G, along with the connections of millions of devices per square kilometer. Base stations, antenna units, edge data servers, and cells will need to migrate to support an upgraded network architecture.

Arm’s Neoverse platform is delivering technology for building seamless networks as wireless technology continues to move to next-generation core designs. The Neoverse platform offers high performance per watt efficiency over traditional processors in clouds and 5G networks. The Arm CMN-700 integrates the Arm Neoverse CPU Cluster, high-speed L1/L2/L3 cache, DDR/LPDDR memory, and high-speed I/O, along with other management IP elements through an on-chip interconnect. It uses Memory Partitioning and Monitoring (MPAM) to share system-level resources like cache and DRAM memory bandwidth. CMN-700 supports CCIX, CXL, and CHI-C2C protocols for multi-die use cases and provides a low-latency path to DDR and CXL-attached memory pools.

By utilizing a high-performance process node, Alphawave Semi, working with Arm and its technologies, can offer compute chiplets that enable faster development, low risk and reduced time-to-market by packaging known good dice with customers’ accelerator chiplets. This collaboration is part of Arm’s Total Design initiative, which aims to create an ecosystem that speeds up the development of specialized silicon solutions based on Arm Neoverse CSS. This ecosystem-centric approach simplifies the design and development of complex computing solutions and addresses the increasingly sophisticated demands of modern digital infrastructures and wireless networks.

The compute chiplet leverages standard packaging as a modular chiplet and can optionally be implemented as a monolithic ASIC. The chiplet portfolio is complemented by a connectivity suite of standards-based, silicon-proven technologies, including PCIe, CXL, Universal Chiplet Express (UCIe), and memory subsystems. Alphawave Semi’s compute chiplet is built using Neoverse CSS N3, which is based on Arm’s Neoverse N3 CPU and the CMN S3 Coherent Mesh Network to create a compute system-in-package (SiP) that excels in scalability, modularity, and power efficiency.

Alphawave Semi’s unique chiplet-based design platform includes a variety of chiplets: an Arm-based Neoverse class compute chiplet, a multi-protocol I/O chiplet, and memory chiplets for various application spaces. The compute chiplet is the latest inclusion that expands the chiplet portfolio capabilities by adding more modularity and functionality for memory and I/O components to be attached to this chiplet. This compute chiplet addition provides yet another chiplet option to customers who wish to enhance the overall performance of their SiP by choosing from a variety of off-the-shelf chiplet products from Alphawave Semi’s portfolio. This broad suite of technologies allows for the flexible development of custom-tailored SiP solutions that meet specific customer requirements with different criteria for advanced packaging choices, IP connectivity, or data bandwidth performance.

Alphawave Semi’s partnership with Arm represents a significant stride in enabling greater performance in new innovative technologies, such as wireless network platforms. This long-term vision will provide greater performance for the complex compute requirements needed by advancements in modern 6G/5G network infrastructure as well as cloud and edge-based applications. This unique collaboration highlights Alphawave Semi’s role in leading the development of high-speed, energy-efficient computing platforms.

[whites123] 10/10/2024 08:45

In my opinion Alphawave (AWE) stands out as an incredible strong buy opportunity, with a clear path to growth despite broader market challenges. The company recently adjusted its full-year guidance, but the 6% reduction is a small dip considering the turbulent macroeconomic backdrop. What's far more important is the momentum behind Alphawave's strategic moves, particularly its game-changing collaboration with Arm. This partnership is a massive catalyst that will transform Alphawave’s market position in high-speed connectivity and semiconductor IP, driving innovation and sales across key markets such as AI, data centers, and advanced computing.

Arm, one of the most prominent names in semiconductor architecture, brings a powerhouse ecosystem and cutting-edge design capabilities to the table. By partnering with Arm, Alphawave positions itself at the core of next-gen tech infrastructures, becoming indispensable to customers that require faster, more efficient data processing. This synergy is expected to result in a major uptick in both licensing revenue and long-term design wins.

Additionally, despite the slight reduction in guidance, the company's overall trajectory remains solid, with its innovative product line driving sustained demand. As industries move towards AI, 5G and 6G, and cloud computing, Alphawave’s IP solutions are increasingly critical. Its ability to help companies achieve lower latency, faster data transfer, and better power efficiency means that it is well-positioned to capture a larger market share in these rapidly expanding sectors.

Now, as the collaboration with Arm ramps up, expect a significant boost to Alphawave’s visibility, customer base, and revenue streams. With shares still undervalued relative to its potential, this is the time to invest in a company that’s poised to ride the next big wave in semiconductor innovation.

With 6G on the horizon and Alphawave in collaboration with Arm, AWE is nailed on to benefit from this.
Defence requirements for IP such as AWE's is further affirmation its on the cusp of greater things.

[hairybeast] 24/9/2024 19:32

Good points. In addition to shedding lower margin / non-strategic customers, customer is defined as revenue generating - presumably revenue generating during the reporting period. If that's the case, then some customers inherited from OpenSilicon with chips in production might still be 'customers', but not counted as customers if they haven't placed an order during H1 2024. Similar, given chip developments (NRE) can take 2-3 years, if there's been no work done on that project for that reporting period (for example if the design has been sent to the foundry for tape out), then no revenue would be recognised during period, even though it's an ongoing customer. So, I wouldn't read too much into that metric. You can run a massive business in this space with 5-10 customers, as long as they are the right ones.

[dividevil] 24/9/2024 18:54

The customer reductions is down to two things:1. The acquisition of OpenFive meant they inherited various low margin products/services (above 13nm etc). They have closed these down during the transition to their higher margin products. 2. Two of their South Korean customers merged (hence two customers becoming one). This is also the reason why they missed their guidance revenue expectation. The merger resulted in the consolidation of some of the development programmes and rescheduling of a couple of tape outs. Had the merger not happened they would have hit their guidance revenue. Ultimately they expect to win back this lost revenue further down the road.

[takeiteasy] 24/9/2024 17:57

Just read slide 7 - trend in number of end customers. Says it all really - lots of exciting bluster and PR after this, but hard to move beyond these facts and the other charts on this page. How do they explain the scale of customer losses?

[dividevil] 24/9/2024 16:07

Link to yesterdays investor call presentation:hTTps://awavesemi.com/wp-content/uploads/2024/09/H1-2024-Results-FINAL-FOR-RELEASE70.pdf