Shares of Everspin Technologies (MRAM) fell sharply on Tuesday after Kerrisdale Capital announced it has taken a short position in the memory chipmaker, arguing the stock's recent parabolic rally is disconnected from its underlying business fundamentals.
- In its report, Kerrisdale argues that Everspin lacks significant exposure to the AI infrastructure boom that has driven the semiconductor sector, noting its largest end market is industrial applications like casino gaming machines, not AI servers.
- The short-seller claims that despite being commercially available for two decades, Everspin's revenue has remained stagnant in the $50 million to $65 million range for years.
- The report asserts that MRAM technology is primarily a substitute for existing memory in niche applications rather than an enabler of new computing architectures, which limits its growth potential.