Kerrisdale Capital released a new report on Tuesday, saying that it is short Everspin Technologies Inc. (NASDAQ:MRAM) because it believes the recent rally in MRAM shares is driven more by AI-related speculation than by any meaningful change in the company's business.



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<li>MRAM stock is down. See the chart and price action here. </li>
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Kerrisdale argued Everspin has been wrongly swept into the broader enthusiasm around memory stocks tied to AI infrastructure. 



Benzinga reached out to Everspin Technologies for comment, but did not receive an immediate response. 



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<h2>AI-Related Memory Demand</h2>



The firm said investors are treating Everspin as if it were a beneficiary of the same demand cycle supporting DRAM and high-bandwidth memory suppliers, even though Everspin's Magnetoresistive Random Access Memory, or MRAM, serves very different markets.



Kerrisdale said MRAM is designed for durability, low power consumption and data retention in harsh environments, not the speed, density and throughput required for hyperscale AI servers. 



The short seller also argued MRAM is not a new breakout technology, stating MRAM has been commercially available for roughly two decades, but Everspin's revenue has remained stuck around the $50 million to $65 million range for much of the past five years. 



<h2>Valuation </h2>



Valuation is the other key part of the short thesis. Kerrisdale says Everspin's stock has surged more than 300% in a matter of weeks and now trades at around 10 times estimated 2027 sales, 38 times estimated 2027 EBITDA and 9 times its own 2029 revenue target. 



The firm argued the multiples are disconnected from Everspin's growth profile and more appropriate for a true AI memory leader than a niche industrial semiconductor supplier.



Kerrisdale estimated MRAM stock's fair value at $14 per share, implying roughly 60% downside from current levels.



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MRAM Price Action: Everspin Technologies shares were down 6.06% at $31.33 at the time of publication Tuesday, according to Benzinga Pro. 



Over the past month, MRAM has gained about 154.7% versus a 3.4% rise in the S&amp;P 500 and is up roughly 232% year-to-date compared to the index’s 6.9% gain.



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Kerrisdale Capital has taken a short position on Everspin Technologies Inc. (NASDAQ: MRAM), claiming the recent stock surge is driven by AI speculation rather than real operational improvements. Following this announcement, MRAM's stock value has declined. Kerrisdale believes Everspin is wrongly associated with other memory tech firms benefiting from AI demand. Everspin has not yet responded to inquiries from Benzinga.

Short-Seller Attacks Everspin Stock — Here's What You Need To Know