Alphawave Ip Share Discussion Threads

[casholaa] 24/8/2023 19:27

The market can drive a person to madness, it has more money than me and can stay irrational longer than I can stay sane.

[the lockkeeper] 24/8/2023 16:30

Treeshake!!! if ever there was a share to day trade its this one today I,ve gone from 400up to 1200 down or therabouts, buy vol roughly twice that of sells and it goes down!!

[dividevil] 24/8/2023 16:14

While people here are probably scratching their heads as to why we are about 5% down today when Nvidia's quarterly results blew away analysts expectations by a mile, I thought I'd point out that Credo's quarterly results are out tonight at 9.15pm UK time. It will be interesting to see how they are doing given that they are Alphawave's most similar competitor.

[casholaa] 24/8/2023 08:19

People only just woke up and they are still reading?

[pugugly] 24/8/2023 08:14

Market reaction minimal - Now why?

[boozey] 23/8/2023 22:32

We've got to open up at least 10% higher in the morning. Nvidia 8% up in after hours trading plus a 3% rise on the day.

[casholaa] 23/8/2023 21:44

Kicking myself for not adding this morning. Wasn't sure how China would affect things.

[pugugly] 23/8/2023 21:33

NVIDIA:> Beat all expectations - Currently up 7.3% in after market.
Could be a blue day for AWE tomorrow.

[casholaa] 23/8/2023 21:28

Nvidia doing $25bn buyback

[boozey] 23/8/2023 20:25

Nice rise into the close in anticipation of good news at 10pm tonight! Only 90 minutes to wait!

Currently up 2.76%

[casholaa] 23/8/2023 16:46

There was decent news re. arm & nvidia over the last day or so.

[dividevil] 23/8/2023 08:59

It's normal. AWE competitors on NASDAQ have also drifted down a bit since the AI fervour that hit in May. If AWE stays on track to its guidance revenue the share price will recover and should gain more ground. Next update due in September / October.

[zam1] 23/8/2023 08:09

Why share price gradually going down from recent 1.60?

[trader465] 07/8/2023 16:15

Artificial Intelligence: four UK shares to watch

[susiebe] 31/7/2023 16:30

I believe today is the last day of JulySome posters find it easy to make absolute fools of themselves.

[casholaa] 20/7/2023 18:32

If only they could design a mobo for my aged Thinkpads so I could keep using them.

[zam1] 20/7/2023 18:26

SP is still under valued stay long, don't even think about selling this will soon be over two pounds, plenty of future growth in the pipe line. My target is by next Jan 2.50

[valhamos] 20/7/2023 11:28

Good to see 4 of the 8 design wins in the quarter are for custom silicon (the largest addressable market), of which 3 are for chiplet-based designs; also two more 3nm design wins this quarter after the first one was announced in the first quarter. The company looks like it is delivering on its plans and it has the expertise to capitalise on the huge growth potential.

[stallone10] 20/7/2023 10:57

Yes but they did not have to suspend their shares twice

[dividevil] 20/7/2023 09:58

For me the good news from the trading update is that there is no change to guidance revenue for 2023. I was not expecting a change and it is good to have confirmation they are still on track to achieve it. Despite the uncertain macroeconomic environment (as the update puts it), the company’s growing pipeline reflects positive secular growth trends in data infrastructure markets and the continued investment in next-generation AI- centric connectivity solutions.

It's worth noting that the guidance revenue is 90% higher than 2022 actual revenue.

I like to do a regular comparison against their competitors to ascertain where Alphawave Semi should be priced. There are five main competitors in the connectivity space: Broadcom, Marvell, Rambus, Credo and Ceva. One of the approaches I take is to look at the EBITDA multiple. I can do this for the first three competitors listed as they all have positive operating cash flow (Credo and CEVA have negative cash flows so cannot use EBITDA multiple). The average EBITDA multiple of the three (Broadcom, Marvell and Rambus) based on current prices is 42. Alphawave EBITDA multiple (based on 2022 EBITDA and current price of £1.57) is 31.
The equivalent price for Alphawave on an EBITDA multiple of 42 is £2.13.
So on that basis Alphawave is still undervalued by more than 35% against it peers by this metric.

If I use the forward guidance 2023 EBITDA of $87 million then this yields an equivalent price of £3.93.

Another approach using 12 month forward P/S ratio comparison with all five competitors gives us an average ratio of 8.36 whereas Alphawave forward P/S ratio is currently 4.1. Again, by this metric Alphawave should be valued at £3.14 if it were to trade at the 8.36 average 12 month forward P/S of its peers.

So to conclude Alphawave remains significantly undervalued compared to its peers.

[casholaa] 20/7/2023 08:51

lol. Patience. There will always be some profit-taking and de-risking.

[indiestu] 20/7/2023 08:49

Kiss of death as usual.

[indiestu] 20/7/2023 08:37

BREEAAKOUUTT!!!!!!! Bye Bye £1

[nimbo1] 20/7/2023 08:24

nice update and now a nice chart..