Alphawave IP (AWE) is trying to brand itself as one of the UK’s best artificial intelligence (AI) semiconductor companies. The group, which listed in 2021, designs chips that can transfer data extremely quickly. This is an essential attribute for AI computers because the faster they can move data, the faster the models can run.
Tip style
Growth
Risk rating
High
Timescale
Medium Term
Bull points
- Exposure to the semiconductor investment boom
- Impressive forecasts
- Potential for near-term margin expansion
- Low valuation
Bear points
- Historical issues with reporting
- Recent missed guidance
- Exposure to the Chinese market
At least, that’s the theory. The problem for Alphawave is that it’s not wholly trusted by the market. The group overstated both revenue and profit in its 2022 preliminary results, a scandal that prompted the chief financial officer to resign. It also missed its latest full-year guidance, and there are lingering concerns about the amount of money it makes from China.