EZchip Semiconductor Ltd. (NASDAQ:EZCH)

This "fabless" semiconductor company, based in Israel, seems to outstrip even its customers CSCO and JNPR just based on technical prowess.

video driving expansion in CESR spending - EZCH leader in niche chips needed by CSCO & most major players

This company has the right chip designs at the right time.

EZCH has a very cash flow positive revenue model and it has a large percentage of its high speed CESR silicon total addressable market. Its R&D spending is very efficient and subsidized by Israeli government grants. In addition, it will not owe any income tax under special Israeli government tax treatment. I expect at least $4.50 non-GAAP EPS in 2013.

I think the NP4 is an outstanding opportunity to enhance revenues and profits.

Although set to lose Juniper as a client, the slack has been taken up by CSCO and it will grow with the latter.

Leader in network processor, CESR and access markets

After long, frustrating wait, the chipsets are starting to be delivered in volume and the product breadth is beginning to take shape. They are in the sweet spot of network traffic driven by video and high speed wireless. Securing Cisco as a key customer validates the quality and design wins are in many vendors. Huge secular undercurrent in telecom favors them. Takeover threat is minor due to Isreali government funding regs. Say what you want about Gilder but his calls on winning tech platforms are usually right just his timing has not been the best. He said years ago that EZCH was an easier pick that QCOM. Been following development of this company for years, it's time has come.

NPU chipset will continue to gain traction over coming years. Gross Margins are high, new NPU chips are just starting production and increasing design wins with Tier 1 customers bode well for a promising future. Strongest growth should be 2 - 5 years out. Get in early for the 1000% gain.

Looks like a winner as soon as the downturn ends. They are designing a winning chipset that could restart the computer speed and power wars.

exponential earnings growth to occur over next two years

Company's revenues are just starting to ramp. Few companies can boost of a forward P/E under 13 and revenue growing around 65% and gross margins over 65%. Very few companies much less the S&P can expect theperformance of this company for the next five years. With major designs with the Tier 1 vendors, it loooks very promising for at least five years.

Working with CISCO will boost them

Asterism Output:
18.3 / 20
9.5 / 20
26 / 22
16.5 / 18

Chips being used by Cisco.

I believe tech. stocks will outperform, especially semiconductor stocks.

Ezch is just now gaining major deployment as the essential switch for ethernet networking, with huge potential. It should rapidly ramp beginning now but accelerating toward the end of the year, and continuing.

ramping revenue, leading technology, increasing customer count,

The next "Intel" of the Internet routing and switch equipment makers.