| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 25.71 | 2718 |
| Intrinsic value (DCF) | 0.32 | -65 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Peraso Inc. (NASDAQ: PRSO) is a fabless semiconductor company specializing in millimeter wave (mmWave) technology for 5G networks and high-speed wireless applications. Headquartered in San Jose, California, Peraso designs and markets mmWave integrated circuits (ICs), modules, and antenna solutions that enable ultra-fast, low-latency connectivity for 5G infrastructure, augmented/virtual reality (AR/VR), and wireless video streaming. The company’s product portfolio includes baseband ICs, RFICs, and accelerator engines optimized for high-throughput applications. Peraso also licenses its intellectual property and provides engineering services. Formerly known as MoSys, Inc., the company rebranded in 2021 to reflect its focus on mmWave innovation. Operating in the competitive semiconductor sector, Peraso targets niche markets where its mmWave expertise provides a technological edge, though its small market cap (~$4.3M) and negative earnings highlight financial challenges.
Peraso Inc. presents a high-risk, high-reward opportunity for investors bullish on mmWave and 5G adoption. The company’s specialized mmWave ICs address growing demand for low-latency, high-bandwidth wireless solutions, particularly in 5G infrastructure and AR/VR. However, its financials raise red flags: a $10.7M net loss in FY2023, negative operating cash flow (-$4.6M), and minimal revenue ($14.6M) suggest liquidity constraints. With a market cap of just $4.3M and no dividends, PRSO is speculative. Its low beta (0.6) indicates relative volatility insulation, but competition from larger semiconductor players and reliance on 5G rollout timelines pose risks. Investors should monitor revenue growth and partnerships in the 5G ecosystem.
Peraso’s competitive advantage lies in its focus on mmWave technology for 60 GHz spectrum and 5G, a niche with high technical barriers. Its integrated solutions (ICs + antennas) differentiate it from generic RF chipmakers. However, the company faces intense competition from well-capitalized semiconductor giants with broader portfolios. Peraso’s fabless model reduces capital expenditures but limits control over production. Its small scale also restricts R&D spending compared to peers, potentially hindering innovation pace. The company’s strength is its IP portfolio, including parallel-access memory technology, but monetizing this via licensing remains challenging. While mmWave adoption in 5G and AR/VR could drive demand, Peraso’s ability to scale is uncertain given its financial position. Strategic partnerships or acquisitions could be pivotal to its survival.