Ashraf Eassa
Long/short equity, contrarian, independent research, tech

Applied Micro: Waking Up From The X-Gene Dream

In my previous article, "Applied Micro's Bullish Thesis Ignores Significant Structural Problems", I argued that the shares of Applied Micro (NASDAQ:AMCC) remained highly overvalued in light of what I believe to be unrealistic valuations of the core connectivity and computing businesses. Further, I believe that the company's oft-touted X-Gene system-on-chip targeted at datacentre applications faces extreme competition from both Intel (NASDAQ:INTC) as well as the incoming flood of other players in the ARM (NASDAQ:ARMH) ecosystem. However, in digging through the conference call transcript, as well as some incremental datapoints, I become materially more bearish on Applied Micro's X-Gene prospects.

Why Would Anybody Buy X-Gene Version 1?

On the most recent call, Applied...

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