Is Everspin Technologies the Next AI Edge Breakout?

Summary

Everspin Technologies NASDAQ: MRAM could be the next big AI winner because AI is driving applications at the edge, and the edge is where Everspin Technologies is best-suited. In fact, its products are not just best-suited for the edge; they are the best in their class for edge applications, and demand is accelerating. Everspin Tech Today$32.66 -4.91 (-13.08%) As of 12:07 PM Eastern This is a fair market value price provided by Massive. Learn more.52-Week Range$5.49▼$51.50P/E Ratio3,275.08Price Target$18.50 What Everspin Technologies does is produce magneto-resistive random access memory (MRAM), a technology that combines the speed of SRAM with the durability of flash, among other benefits.Get Everspin Tech alerts:Sign Up MRAM is different from traditional memory because it is based on electron spin rather than charge. This enables low-energy memory storage, resistance to power loss, radiation, heat, and nearly unlimited write endurance. The applications are virtually unlimited, but some negative factors are affecting the outlook. Among them are higher costs compared to traditional memory and a more complex manufacturing process. They also provide lower memory density and require more power for the initial write, so demand tends to be focused on more specialized applications, including consumer wearables, microcontrollers, and aerospace/defense industries. Everspin Outperforms, Raises Guidance Amid Capacity ExpansionEverspin had a solid quarter, with Q1 results highlighting its growth trajectory. The microcap company reported $14.87 million in net revenue, up 13.5% year-over-year (YOY), driven by demand in industrial automation, transportation, and data centers. The top line was nearly 200 basis points (bps) better than expected, compounded by a widening margin and hot guidance. The company’s margins expanded at the gross and operating levels, resulting in a narrower GAAP loss and improved adjusted profitability. The adjusted earnings grew by quadruple digits YOY, an...