Over on Yahoo...

[Admin]

"Raymond James update on AMCC
While the Street remains skeptical on the prospects of any ARM-based processor in the data
center, Applied Micro highlighted its over-50 global X-Gene engagements, with recent
roadmap support for the X-Gene3 launch coming from HP, EMC, and Morgan Stanley. With
the recent disclosure of TSMC using X-Gene for its web front-end data centers and China
Unicom’s announced initiation of a Joint Verification Program with X-Gene (to reduce data
center costs), it strikes us as apparent X-Gene is more than a lab experiment or R&D curiosity.
Currently, Applied Micro has line-of-sight for 50,000-100,000 X-Gene unit demand over the
next 18-24 months. ........
.....In Applied Micro’s traditional connectivity business, the company has been working on 16nm
FinFET-based PAM4 silicon that will enable 100G optical transmission by existing fiber
infrastructure while shifting the cost and complexity of optical modules to silicon (DSP-centric
ASICs) vs. current NRZ-based solutions.
Dr. Gopi pegs the PAM4 opportunity at ~$1 billion over the next several years, and the
company’s early work has already led to key design wins. PAM4 100G is expected to start an
intermediate 2-laser (each with 2x25G bandwidth) solution in 2H16, with the more important
(for Applied Micro) 1-laser solution (2x50G enabled by FinFET) in 2017."

finance.yahoo.com/mbview/threadview/?&bn=210f760a-89db-30aa-b2ca-258a3483cc7f&tid=1450712422969-27a5caa5-4193-4432-80b5-4a17d976b07e&tls=la%2Cd%2C0%2C3

[christopher]

Thanks for posting phobos,

This is a very positive article except for the first sentence which I am in complete agreement with.

"While the street remains skeptical on the prospects of any ARM-based processor in the data center."

With the number of high expectations, one would believe that there would be more news. Don't get me wrong, the middle of November had enough news to last the next six months, but I am mainly speaking of smaller news items to help market the roadmap of this company's future. Maybe I am speaking about this too early.

[Admin]

I think "the street" IS skeptical, which is why we don't have Cavium's valuation. The good news is that all AMCC needs to do is to keep hitting their numbers and that valuation should go up.

Also, AMCC has not just made another "me too" ARM knockoff, they made their CPUs with custom cores and are devoting considerable effort to both the eco-system and the ancillary networking chips as well. This is not a one-shot deal.

You also have to consider, an extra billion in sales (from ARM chips, but also from x-weave, PAM4, and others) for a company of AMCC's current size is no small consideration. This amount of money is pocket change to INTC, but for AMCC it means a multiple of current revenues.

But, as always, hurry up and wait.