Mar. 13 at 3:29 PM
Sharing my biggest position. 370,000 shares of
$IQEPF
AI data centers are hitting a wall. Copper can’t handle the data flow. The fix is photonics — using light instead of electricity. Nvidia just threw
$4B at Lumentum & Coherent to lock up laser supply.
Those lasers need Indium Phosphide wafers. IQE makes them. Multi-year supply deal with Lumentum. IQE is in Nvidia’s supply chain.
IQE is the world’s only global, at-scale, independent epiwafer foundry. 30 years in business. Biggest capacity on the planet. A near-monopoly toll road for photonics.
Now the crazy part. Closest competitor LandMark (Taiwan) trades at ~
$4.1B market cap on ~
$68M revenue. ~60x sales.
IQE? ~
$300M market cap on ~
$122M revenue. ~1x sales.
Double the revenue, valued 13.7x less. P/PPE is 0.6x — below the replacement cost of its own machines.
370k shares. Sleeping fine. Not financial advice. DYOR.
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