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Phil Kumin's avatar

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?

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Irrational Analysis's avatar

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.

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Askar's avatar

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.

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