Everspin Technologies (MRAM) is drawing fresh attention after Avalanche Technology filed a patent infringement lawsuit and a related US International Trade Commission complaint focused on Everspin’s Spin-transfer Torque MRAM product line.

The lawsuit arrives at a time when Everspin’s share price has shown strong momentum, with a 30 day share price return of 31.61% and a year to date share price return of 31.61%, while the 1 year total shareholder return sits at 130.26%.

If legal risk and semiconductor exposure are on your radar, this could be a good moment to broaden your watchlist and check out high growth tech and AI stocks.

With the stock up strongly over the past year, but trading above a US$10.50 analyst target and carrying a value score of 1, the key question is whether legal and growth risks are fully reflected or if the market is still underpricing its future potential.

Most Popular Narrative: 26.1% Overvalued

With Everspin Technologies last closing at $13.24 against a narrative fair value of $10.50, the current price sits well above that estimate and puts more focus on the growth assumptions behind it.

Expansion and ramp of new products (e.g., xSPI family and PERSYST MRAM solutions) into aerospace, defense, automotive, and extreme industrial environments leverage industry preference for high reliability, nonvolatile memory, supporting ASPs and gross margin expansion as volumes increase.

Want to see what kind of revenue build, margin path, and future earnings multiple are baked into that $10.50 figure? The narrative leans on steady top line growth, stable profitability, and a premium earnings multiple that outpaces many peers. Curious how those ingredients combine into one valuation story?

Result: Fair Value of $10.50 (OVERVALUED)

However, there are clear pressure points here, including execution risk around new product ramps and dependence on specialized and government linked contracts that can be unpredictable.

Build Your Own Everspin Technologies Narrative

If you are not fully on board with this storyline or simply prefer to work from your own assumptions, you can stress test the numbers, adjust the inputs, and build a personal view of Everspin in just a few minutes with Do it your way.

A great starting point for your Everspin Technologies research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.