Chipmaker Alphawave IP touts record orders on 5G demand

Canadian computer chipmaker Alphawave IP's (AWE.L) shares were bumped in early trade on Monday, following reports of a strong first quarter driven by 5G products and "strategic design wins".

The group said that total bookings year to date have exceeded $190m (£134.8m), which is its strongest-ever first half performance.

This follows a record $82m of bookings in Q1 2021 and bookings of $75m in the full-year 2021 (of which $8m and $23m, respectively, are estimated royalties).

It also said it had been selected as a provider to one of the largest hyperscaler companies in the world.

Shares rose around 4% in early trade in London following the report, but were still trading some way below the share price on debut.

"The team has done a great job continuing to execute on our business goals while successfully completing our IPO on the London Stock Exchange in May and raising $500m in proceeds to fund the group's continued growth and global expansion," said Tony Pialis, president and CEO.

Read more: UK Huawei 5G ban hammers top line

It is positive news for the company, which saw over half a billion pounds wiped off its value on debut in May as the company's IPO bombed.

Shares in Alphawave slumped 20% on its London stock market debut, giving the firm a market cap of around £2.23bn, down from the initial value of £3.1bn.

The company, which shunned a listing on the tech-heavy Nasdaq index (^IXIC) in New York, had set a price of 410p per share for its float.

The news follows reports from the weekend showing that telecoms rival Huawei had seen its top line hammered in the UK due to exclusion from Britain's 5G networks. Huawei's UK operation saw its turnover plummet 27.5% in 2020 to £913m.

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