The adoption of magnetoresistive random-access memory (MRAM), a type of solid-state storage circuit, has increased significantly amid the fast-paced digitalization thanks to its “ideal memory” characteristics. MRAMs permit data and programs to be retained in local memory. They offer almost 600% higher speed than the conventional RAMs.
The growing need for low-cost, small-size, and power-efficient random-access memory technology, rising investment in electronic devices, and the development of smart robots should fuel the MRAM industry’s growth. The MRAM market is expected to register a CAGR of 62.1% by 2026.
Everspin Technologies, Inc. (MRAM)
Incorporated in 2008, MRAM is a provider of magnetoresistive random-access memory solutions. The company offers Toggle MRAM, spin-transfer torque MRAM, and tunnel magnetoresistance sensor products, as well as foundry services for embedded magnetoresistive random-access memory. It delivers solutions for industrial, medical, automotive, transportation, aerospace, and data centers.
During the fiscal third quarter ended September 30, 2021, MRAM’s product sales increased 25.7% year-over-year to $12.04 million. The company’s total revenue grew 46.2% from the year-ago value to $14.8 million. Its gross profit rose 262.7% from the prior-year quarter to $8.45 million. Also, the company’s operating income came in at $1.08 million, compared to an operating loss of $3.71 million in the fiscal third quarter of 2020.
MRAM’s revenue is expected to increase 27.2% year-over-year to $53.45 million in the fiscal year 2021. The company has an impressive earnings surprise history; it beat the consensus EPS estimates in each of the trailing four quarters. The company’s EPS is expected to increase 125% in the current year and 166.7% next year. The stock has gained 116.1% over the past six months.
MRAM’s POWR Ratings reflect this promising outlook. The stock also has an A grade for Sentiment, and a B grade for Value and Momentum.
In addition to the POWR Rating grades I’ve just highlighted, one can see MRAM’s ratings for Growth, Stability, and Quality here. The stock is ranked #57 in the same industry.
NVE Corporation (NVEC)
NVEC is a developer in the practical commercialization of spintronics, a nanotechnology that relies on electron spin to acquire, store and transmit information. The company manufactures high-performance spintronics products, including sensors and couples. NVEC’s products include standard sensors to detect the presence of a magnetic or metallic material and custom and medical sensors for medical devices to replace electromechanical magnetic switches.
In September, NVEC introduced the IL4822 isolated RS-485/RS-422 transceiver with an integrated 3.3-to-five-volt isolated DC-to-DC boost convertor. It is ideal for interfacing 3.3-volt controllers to ubiquitous five-volt busses. The new part complements the previously-announced IL4622E, which has a 3.3-to-3.3-volt DC-to-DC convertor for interfacing to newer 3.3-volt busses.
NVEC’s product sales increased 59.4% year-over-year to $6.63 million for the fiscal second quarter ended September 30, 2021. The company’s total revenue grew 55.8% from the year-ago value to $6.82 million. Its gross profit rose 53.5% from the prior-year quarter to $5.28 million. Also, the company’s operating income increased 80.5% year-over-year to $4.09 million.
NVEC’s EPS is estimated to increase at the rate of 25% per annum in the next five years. The stock has gained 44.9% over the past year and 30.7% over year-to-date.
NVEC’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
NVEC has also rated an A grade for Quality, and a B grade for Momentum. Within the A-rated Semiconductor & Wireless Chip industry, the stock is ranked #28 of 102 stocks.
To see additional POWR Ratings for Growth, Value, Stability, and Sentiment for NVEC, click here.
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MRAM shares were trading at $11.39 per share on Monday morning, up $0.65 (+6.05%). Year-to-date, MRAM has gained 147.61%, versus a 26.02% rise in the benchmark S&P 500 index during the same period.
About the Author: Priyanka Mandal
Priyanka is a passionate investment analyst and financial journalist. After earning a master's degree in economics, her interest in financial markets motivated her to begin her career in investment research. More...
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