Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

Ingenuity

Our focus is exclusively on in-depth research & consulting in the broader semiconductor industry. We focus on the key players, namely Intel, Micron, Qualcomm, Apple, Samsung, NVIDIA, AMD, TSMC & Global Foundries - as well as some of the lesser known, but nonetheless critical, companies such as ASML (for EUV), Mellanox, Cavium, Xilinx etc. We specialise in their products, roadmaps, process technologies, competitive advantages & threats etc. We also help our clients understand the implications of new and emerging technologies, e.g. 3D X-Point, 3D NAND, Carbon Nanotubes, Autonomous Driving, Graphene, Silicon Photonics, Wafer-Level Optics, Artificial Intelligence, FPGA, GPU, ASIC etc. 

Semiconductor Analysis & Research

Thematic (Sector/Industry)

New York based activist investor firm Starboard Value has been intricately involved in shaping the  fortunes and futures of two high profile technology companies in recent years, <a href="https://www.smartkarma.com/entities/15837" target="_blank" data-smartkarma-citation="entities:15837:1">Marvell</a> and <a href="https://www.smartkarma.com/entities/27424" target="_blank" data-smartkarma-citation="entities:27424:1">Mellanox</a>. The firm first to prominence some five years ago when they were the first among their peers to accomplish the extraordinary feat of replacing the CEO and entire board of Fortune 500 restaurant group <a href="https://www.smartkarma.com/entities/19565" target="_blank" data-smartkarma-citation="entities:19565:1">Darden</a>, while holding less than 10% of the company's shares.In the wake of their Darden coup, the firm has gone from strength to strength. To date the firm has taken positions in a total of 105 publicly listed companies, replacing or adding some 211 directors on over 60 corporate boards.On March 7'th 2019, Starboard Value announced the acquisition of a 4% stake in US comms infrastructure firm <a href="https://www.smartkarma.com/entities/995" target="_blank" data-smartkarma-citation="entities:995:1">Zayo</a>. In the intervening period, Zayo's share price has risen by 14% as canny investors scramble to partake in the goodness that will surely be extracted by the activist firm that simply doesn't take no for an answer.

New York based activist investor firm Starboard Value has been intricately involved in shaping the  fortunes and futures of two high profile technology companies in recent years, Marvell and Mellanox. The firm first to prominence some five years ago when they were the first among their peers to accomplish the extraordinary feat of replacing the CEO and entire board of Fortune 500 restaurant group Darden, while holding less than 10% of the company's shares.In the wake of their Darden coup, the firm has gone from strength to strength. To date the firm has taken positions in a total of 105 publicly listed companies, replacing or adding some 211 directors on over 60 corporate boards.On March 7'th 2019, Starboard Value announced the acquisition of a 4% stake in US comms infrastructure firm Zayo. In the intervening period, Zayo's share price has risen by 14% as canny investors scramble to partake in the goodness that will surely be extracted by the activist firm that simply doesn't take no for an answer. 

Starboard Value. The Game Changing Activist Investor That Doesn't Take No For An Answer.

Equity Bottom-Up

On March 11'th 2019, <a href="https://www.smartkarma.com/entities/5891" target="_blank" data-smartkarma-citation="entities:5891:1">Nvidia</a> announced the acquisition of market leading high-speed interconnect company <a href="https://www.smartkarma.com/entities/27424" target="_blank" data-smartkarma-citation="entities:27424:1">Mellanox</a> for $6.9 billion in an all-cash deal. At first blush, the benefits touted by both companies and accepted by most commentators make sense and the deal will be immediately accretive to both EPS and revenues upon closing according to NVIDIA. However, the clear and present threat to NVIDIA's future success has little to do with interconnect technologies. Rather, it is the competitive challenge to their GPU solutions for data center acceleration from a broad spectrum of alternatives from the likes of <a href="https://www.smartkarma.com/entities/11369" target="_blank" data-smartkarma-citation="entities:11369:1">Alphabet</a>, <a href="https://www.smartkarma.com/entities/179" target="_blank" data-smartkarma-citation="entities:179:1">Baidu</a>, <a href="https://www.smartkarma.com/entities/16764" target="_blank" data-smartkarma-citation="entities:16764:1">Intel</a>, <a href="https://www.smartkarma.com/entities/11600" target="_blank" data-smartkarma-citation="entities:11600:1">Xilinx</a>, <a href="https://www.smartkarma.com/entities/19009" target="_blank" data-smartkarma-citation="entities:19009:1">Advanced Micro Devices </a>etc, not to mention the host of custom-ASIC accelerator startups poised to launch their products this year. The acquisition of Mellanox will do nothing to address this situation and we see it as being a distraction from where the company really needs to be focusing.It will serve one purpose though, as a BandAid to mask the otherwise inevitable decline in its data center revenue growth in the face of ever-increasing competition.

On March 11'th 2019, Nvidia announced the acquisition of market leading high-speed interconnect company Mellanox for $6.9 billion in an all-cash deal. At first blush, the benefits touted by both companies and accepted by most commentators make sense and the deal will be immediately accretive to both EPS and revenues upon closing according to NVIDIA. However, the clear and present threat to NVIDIA's future success has little to do with interconnect technologies. Rather, it is the competitive challenge to their GPU solutions for data center acceleration from a broad spectrum of alternatives from the likes of Alphabet, Baidu, Intel, Xilinx, Advanced Micro Devices etc, not to mention the host of custom-ASIC accelerator startups poised to launch their products this year. The acquisition of Mellanox will do nothing to address this situation and we see it as being a distraction from where the company really needs to be focusing.It will serve one purpose though, as a BandAid to mask the otherwise inevitable decline in its data center revenue growth in the face of ever-increasing competition. 

NVIDIA's $6.9 Billion Mellanox Band-Aid Is A Strategic Misstep

Israel

Mellanox Technologies Ltd. designs and develops semiconductor-based, high-performance interconnect products.  The Company's products facilitate data transmission between servers and storage systems through communications infrastructure equipment.

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Mellanox Technologies (MLNX US)

Starboard Value. The Game Changing Activist Investor That Doesn't Take No For An Answer.

New York based activist investor firm Starboard Value has been intricately involved in shaping the fortunes and futures of two high profile...

William Keating

NVIDIA's $6.9 Billion Mellanox Band-Aid Is A Strategic Misstep

On March 11'th 2019, Nvidia announced the acquisition of market leading high-speed interconnect company Mellanox for $6.9 billion in an all-cash...

William Keating

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