Alphawave IP Group PLC (LSE:AWE), one of the UK's few listed semiconductor names, reports half-year results on Monday as it continues to try and regain its reputation that seemed tentative since an inglorious IPO.
The semiconductor company immediately lost 20% of its £3.1 billion market valuation on the first day of trading in May 2021, having raised £750 million.
Since then things have been distinctly mixed.
Not long after floating, there were some serious questions being asked about its "curiously close contracts", with the shares falling as low as 89p around the turn of this year – 78% below the 410p IPO price.
Then, just as things were looking to have improved, it delayed final results in April as its auditor asked for more time, and when the audited numbers arrived the company parted ways with its finance chief as operating profit turned out to have been overstated by US$7.4 million.
Analysts at Jefferies said the initial delay was "disappointing" as it came "just as it was beginning to shake off previous corporate governance concerns".
Following the audited numbers, Barclays said the results "saw some modest non-cash changes" to the previously disclosed FY22 results. Importantly cash was unchanged.
"An unqualified opinion on the audited accounts should provide some reassurance."
Indeed, the shares have made a tentative 28% recovery from the lows, though original IPO investors are still down by around two thirds.
Analysts trimmed their 2024 earnings per share forecast by circa 20% due to higher depreciation and amortisation, and cut its price target to 130p.
The Jefferies analysts called Alphawave "Europe's best AI play" in a note in July, saying "AI is expected to create additional demand for both its data centre focused wired connectivity IP, as well as its custom and merchant silicon business".
They expect its custom silicon business to be the main growth driver over the next three years "due to increased demand for network processors, connectivity chiplet dies and AI computer chips", with ASSPs based on Banias Labs' IP also expected to contribute from 2025.