$MRAM Bull Case - Future of Memory
Kerrisdale just dropped a massive short report trying to scare everyone out of Everspin Technologies ($MRAM), claiming it’s a "fake AI memory stock" that belongs in a casino slot machine.
They are shorting the past, completely blind to the future. Here is the quick counter-thesis to print out and hand to them when they have to cover.
1. The Massive "Edge AI" Blindspot
Kerrisdale’s whole argument rests on the fact that Everspin doesn’t sell High-Bandwidth Memory (HBM) to massive NVIDIA data center clusters. No kidding.
They completely miss that the next phase of the boom is Edge AI—running AI inference locally on autonomous vehicles, smart factories, defense systems, and robotics.
The Problem: Traditional DRAM is volatile. It constantly bleeds battery via "refresh cycles" just to hold onto data.
The Solution: Everspin’s MRAM is non-volatile (persistent). It offers near-DRAM speeds but consumes zero standby power because it stores data magnetically. As AI moves to mobile and edge hardware, battery life and instant-on capabilities are non-negotiable. MRAM is the structural answer.
2. Coping on the $40M U.S. Defense Contract
Kerrisdale scoffs at Everspin's massive 2.5-year, $40 million U.S. Defense Industrial Base contract, calling it a "temporary revenue lift."
Are they serious? That single contract locks in over 70% of their annual trailing revenue into guaranteed backlog. The Department of Defense isn't charity; they are heavily subsidizing and de-risking Everspin's domestic U.S. manufacturing scaling because MRAM is radiation-tolerant and physically can't fail in extreme aerospace environments. Kerrisdale calls it a "recipe book"—in reality, it's a government-backed economic moat.
3. The Fabless IP Trap
They claim giant foundries like TSMC or Samsung will just build their own MRAM and crush Everspin.
They don't understand the fabless semiconductor model. Everspin holds an absolute iron curtain of over 600 active patents on MRAM technology. When the tech goes mainstream, the mega-foundries aren't going to spend a decade fighting lawsuits; they are going to license Everspin's IP or partner with them (just look at Everspin's recent production deal with Microchip Technology).
The Bottom Line
Kerrisdale is trading $MRAM like a cyclical, low-margin legacy chipmaker because they looked at historical financials. They are completely ignoring the massive architectural inflection point into high-density STT-MRAM and their new UNISYST platform built specifically for Edge AI.
4. The Megatrend They’re Blindingly Ignoring: The Orbital AI Space Race
Kerrisdale treats space-related memory like a stagnant sci-fi fantasy. They are completely oblivious to the fact that the biggest capital on Earth is currently racing to build orbital data centers to bypass terrestrial power grid bottlenecks.
Look at what’s actually happening right now in the macro landscape:
The Tech Giants & Mega-Launchers: Google is actively exploring orbital data infrastructure to combat Earth-bound energy caps. SpaceX (via Starlink/Starship) and Blue Origin (via New Glenn) are drastically dropping launch costs per kilogram, making massive space-based hardware deployments economically viable for the first time in history.
The Billion-Dollar AI-Space Startups: Companies like Starcloud (which just hit a $1.1B unicorn status after launching an Nvidia H100 into orbit to train the first LLM in space) and Robinhood co-founder's Cowboy Space (which just secured a $275M Series B at a $2B valuation to build 1-megawatt orbital AI data centers) are pouring hundreds of millions into space-based compute infrastructure.
Sovereign Nation Scaling: The Chinese government is aggressively funding its own massive state-backed mega-constellations (like the G60 Starlink competitor) to establish sovereign orbital dominance.
What do all of these orbital AI data centers, next-gen rockets, and satellite constellations need? They need non-volatile, radiation-hardened, ultra-low-power memory that won't melt under cosmic rays or drain power grids in extreme conditions.
Kerrisdale thinks Everspin is trapped in legacy industrial cycles. In reality, Everspin owns the exact foundational MRAM IP that this entire multi-billion dollar geopolitical space-AI infrastructure boom is going to rely on.
They see a 300% momentum rally and think "bubble." I see a massive structural re-rating because the market finally figured out who owns the IP for the next wave of hardware.
Stay strong. Let them shorts dig an even deeper hole. 🚀
Disclaimer: Not financial advice. Just a fellow degenerate who likes the tech.