The latest news about crypto market has Netlist buzzing. The company is relaunching its CXL Hybrdimm product, a move that has been in the making for over a decade. And while it’s been a long journey with plenty of ups and downs, this time it looks like they’re aiming for high margins and some serious revenue.

The Journey of CXL Hybrdimm

Let’s take a step back. CXL Hybrdimm has been in the works for a long time, around ten years to be exact, with the first product hitting the market nearly nine years ago. The partnership with SK Hynix, established in 2021, has been a key part of this saga. It seems the stars are finally aligning, with SK Hynix poised to help commercialize CXL Hybrdimm, either by producing it for Netlist or by providing the CXL base—likely at a lower cost.

Market Potential and Revenue Projections

The potential for CXL NV is looking pretty bright. The market is expected to be valued between $200 million and $250 million by 2025. If you look back at the growth of HBM, this could turn into something exponential. Netlist’s recent recruitment of top management for CXL Hybrdimm indicates that they’re serious about capturing market share. Their goal? Gross margins between 30% and 50%. High hopes, indeed.

Strategic Partnerships and Their Impact

Partnerships are everything in tech, and Netlist’s collaboration with SK Hynix is no exception. Whether SK Hynix produces the product for Netlist or sells the CXL base at a low price, they’re set to benefit. The latter option seems more likely, as it would give Netlist the ability to scratch SK Hynix’s back while also scratching their own.

Upcoming Products and Market Expansion

But that’s not all folks. Netlist isn’t just launching CXL Hybrdimm. They’re gearing up to roll out two additional products this year: Lightning and SK Hynix resale MCRDIMM. Lightning, which is tailored for gaming and blockchain, is based on Kingston’s Fury, aiming for a niche market. The SK Hynix resale MCRDIMM is expected to pull in significant revenue as well. The market for this is projected to be around $200 million to $250 million by 2025.

The Importance of Gross Margins

Now, let’s talk about gross margins. They’re the lifeblood of any tech company. Netlist is gunning for gross margins of 7% to 10% by 2025, up from the current 2.5% to 3%. They’ll need to hit those numbers if they want to keep investors happy.

Leadership and Positive News

And finally, strong leadership and good news are critical for keeping the investor’s confidence up. The management has been vocal about their intentions and expectations, and the crypto market is keenly focused on how they’ll deliver.

Summary

In summary, Netlist’s CXL Hybrdimm relaunch is a big opportunity for them. With strategic partnerships and upcoming products in the pipeline, they’re set up for some interesting growth. It’ll be a fascinating watch to see how things unfold.

The author does not own or have any interest in the securities discussed in the article.