ASIC And Optical Interconnects Support A High-Speed Growth Landscape; Bank Of America Strongly Backs Mywell Technology, Claiming It Still Has 55% Room For Growth!
Bank of America maintains its $365 target price for Mywell Technology, focusing on expanding revenue share in each AI system through customized AI accelerator ASICs and supporting optical interconnect chips tailored to the inference needs of massive AI agents. However, the $40 billion to $45 billion revenue opportunity by 2030 is a scenario estimate, with realization depending on client projects, product shares, and profitability.
From an engineering and business model perspective, Mywell Technologies benefits from customized AI-accelerated computing and system-based optical communication. ASICs designed for specific workloads can optimize compute units, storage access, and data flows to improve energy efficiency and reduce large-scale deployment costs; Meanwhile, more accelerators urgently need fully equipped network, memory interface chips, and data center high-speed connectivity chips based on optical technology.
According to the latest estimates from Bank of America, pairing each custom processor with one or two chips priced between $500 and $1,500 can enable companies to gain multiple revenue increments as customers scale up. The complexity of high-speed analog circuits, interface intellectual property, and system verification creates barriers for customers to replicate these products themselves.
Mywell's second growth curve, besides partnering with cloud computing giants like Amazon to develop AI ASIC chips, is the underlying driver of optical interconnect demand because the effective computing power of AI clusters increasingly depends on cross-node communication efficiency. Data exchange; Network congestion causes expensive accelerators to wait for data, reducing overall cluster utilization. As transmission rates and distances increase, copper connection losses, signal compensation, and power pressure increase, driving more links to adopt optical connections. Mywell participates through optical communication digital signal processors, high-speed serial interfaces, drivers, and related interconnect products. The company's already mass-produced Ara platform and expanded 1.6T product portfolio are specific products undertaking this upgrade.
Mywell Technology's expanded collaboration with Google is particularly noteworthy, covering chips that support the search giant's AI infrastructure. Additionally, the agreement grants Google the right to purchase Mywell stock at specific prices, depending on future purchases. With Analyst Day approaching on October 6, investors may soon gain a clearer understanding of just how significant this opportunity truly is.
Market Insight:
Bank of America estimates that by 2030, the market size for this supporting chip alone could exceed $60 billion to $65 billion. Based on an estimated 40% to 50% market share, Mywell Technology's annual sales opportunity could reach $30 billion. In addition, custom processors provide another important growth driver. Bank of America believes that by 2030, Mywell could potentially achieve $15 billion in sales in this field, bringing the combined opportunity to $40 to $45 billion. However, it should be noted that these opportunities are model-based and not confirmed orders.
