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

Is Mellanox The Next Nvidia?

Mellanox (NASDAQ:MLNX) is a fabless semiconductor company that designs interconnect products for the datacenter. In particular, the company's products focus on both InfiniBand and Ethernet adapter and switch silicon. Now, while Mellanox's Ethernet business is growing nicely as the Web 2.0 infrastructure/cloud builds out (ethernet is the interconnect of choice here), the firm's real crown jewel is the high performance computing space in which it can deploy its InfiniBand products.

Why is InfiniBand so important?

InfiniBand, for those of you unfamiliar with the technology, is a very high speed network connectivity standard. It connects up systems as Ethernet does, but it is generally much faster at doing so. For many datacenter applications, particularly those that are cost-sensitive, Ethernet...

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