Inphi Corporation is the provider of high-speed analog semiconductor solutions for the communications and computing markets.Its analog semiconductor solutions provide high signal integrity at leading-edge data speeds.
- The inevitable surge in data consumption following the introduction of 5G is certain.
- This expected surge is driving the growth of large data centers to accommodate it.
- Inphi connects and moves data between and within these data centers via it's semi-conductor components and optical subsystems.
- Cofounder Loi Nguyen says: "Inphi is in the bandwidth business".
- Inphi serves two end markets: Cloud customers (60% of the business) and Telecom customers (40%).
- Inphi has close relationships with large tier OEM's (Original Equipment Manufacturers) and works with them to embed it's technology in their products - this creates a strong barrier to entry for competitors.
- Covid has increased dramatically the amount of data being consumed online. As demand rises, so does Inphi's longterm stock price and profetability.
- Top customers: Microsoft (14% of revenue) and Huawei (11%). 10 largest direct customers account for 70% of total revenue.
- Inphi is not yet profitable as R&D is at 45-50% of revenue. This percentage will clearly shrink as revenue grows.
- Revenue has climbed 20% per year for the last 10 years (annualised).
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