For Astera, can you explain what is meant by "Fake gross margins from related party revenue via Amazon warrants." I thought they issued warrants to a customer- how would this boost margins?
Amazon gets shares of ALAB at a deep discount to market value. This does not show up in COGS but I think it should. It is market distorting. For example, there is lost of competition in PCIe re-timers now that AVGO and MRVL have entered the market. The SerDes on these products is better than the one ALAB licensed. Amazon continues to buy because of the share-based discounts.
Supermicro is in a perfect competition with Dell, HP and others. They have no IP or don't add anything valuable - zero competitive position vs peers. I was amazed when it tripled in Q1 and not amazed at its drop since then.
For Astera, can you explain what is meant by "Fake gross margins from related party revenue via Amazon warrants." I thought they issued warrants to a customer- how would this boost margins?
Amazon gets shares of ALAB at a deep discount to market value. This does not show up in COGS but I think it should. It is market distorting. For example, there is lost of competition in PCIe re-timers now that AVGO and MRVL have entered the market. The SerDes on these products is better than the one ALAB licensed. Amazon continues to buy because of the share-based discounts.
Supermicro is in a perfect competition with Dell, HP and others. They have no IP or don't add anything valuable - zero competitive position vs peers. I was amazed when it tripled in Q1 and not amazed at its drop since then.