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

The Applied Micro Circus Continues

Applied Micro (NASDAQ:AMCC) is a company that has managed to garner an inordinate amount of hype for its upcoming ARM (NASDAQ:ARMH)-based system-on-chip aimed at enterprise/cloud applications known as X-Gene. What has largely made Applied Micro "interesting", however, is that the enthusiasm for X-Gene has been fueled by an improving business as the company has benefitted from a multi-quarter uptick in its core network connectivity and processor business.

I have outlined in numerous works why I believe the stock to be grossly overvalued and, more importantly, why I believe that the X-Gene project is, in my view, a "paper tiger" that will ultimately fall short of the very lofty (and, frankly, unrealistic) expectations set forth by management...

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