Everspin Technologies (MRAM) stock dropped as much as 11% Tuesday after short seller Kerrisdale Capital announced a short position against the memory chipmaker, arguing its recent rally has little to do with its actual business.
Everspin Technologies, Inc., MRAM
Kerrisdale said the stock has surged more than 300% as investors piled into anything connected to memory and AI. But the firm says Everspin’s core markets tell a different story.
The short seller pointed out that Everspin’s largest end market is casino gaming and slot machines — not hyperscalers or AI data centers. That’s a far cry from the AI infrastructure narrative that has been driving the semiconductor sector.
Kerrisdale set a price target of $14 per share, which would represent a roughly 63% decline from where the stock was trading before the report dropped.
Trading volume had surged from a few million dollars to over $1 billion in a single session leading up to the report, despite no comparable change in the company’s business.
Everspin now trades at around 10 times 2027 estimated sales and 38 times 2027 estimated EBITDA. Kerrisdale noted that actual AI memory companies trade at lower multiples — despite growing faster.
The company’s P/E ratio currently sits at an eye-watering 3,273x. That kind of multiple demands flawless execution and massive growth. Everspin hasn’t delivered either recently.
Revenue has been stuck in a $50M–$65M range for years. Kerrisdale described MRAM adoption as “substitution-driven” — replacing existing memory in niche applications rather than unlocking new computing use cases.
MRAM technology, the firm argued, solves a different problem than the high-bandwidth memory and DRAM powering AI clusters. It’s primarily used in industrial and embedded systems where data persistence matters, not raw speed or scale.
Over the past three months, insiders — including the CEO, CFO, and two board directors — sold a combined $3.9 million worth of stock. No insider purchases were reported during that period.
That kind of selling during a 300% rally tends to catch the market’s attention, and Kerrisdale leaned into it.
Despite the short report, Everspin’s most recent earnings did beat expectations. The company reported Non-GAAP EPS above estimates, and revenue also came in ahead of forecasts.
The company’s Altman Z-score sits at 35.38, which signals a low risk of bankruptcy. Financial strength is rated 8 out of 10 by GF Score metrics.
But its profitability rank is just 3 out of 10, and its overall GF Score is 61 out of 100 — a moderate rating that doesn’t exactly inspire confidence at current valuations.
Everspin’s market cap stood at approximately $767 million heading into Tuesday’s session.
The stock’s GF Score of 61 reflects moderate quality across financial strength, growth, and momentum — but valuation and profitability drag the overall picture down.
Kerrisdale’s $14 target remains the most recent price view on the table.
The post Everspin Technologies (MRAM) Stock Falls After Kerrisdale Capital Short Report appeared first on CoinCentral.
