Asetek stock value tanks as large OEM customers drop order volumes
Asetek’s share price has dropped by 40% overnight as company issues new purchase forecasts
Asetek isn’t well known within the PC market, but their products are everywhere. They are the company behind many of the most popular all-in-one CPU liquid coolers on the market. Beyond that, their patents have given them a stranglehold over the all-in-one liquid cooling market for around a decade. Many legal battles have been fought to maintain this position, but now, it looks like Asetek’s dominance is coming to an end.
On Wednesday, June 12th, Asetek’s stock value plummeted by 40%. This drop came shortly after the company announced that they were suspending their revenue and profitability guidance for 2024. Basically, the company has received updated purchase forecasts from their largest OEM customers, and they aren’t good.
Now, Asetek’s expecting a “significant decline” in both revenue and profitability in 2024. This has caused many investors to lose faith in the company.
Previously, Asetek expected revenue growth in 2024. This was likely due to the upcoming launches of AMD’s Ryzen 9000 series and Intel’s Arrow Lake desktop processors. This expected demand has not materialised from their OEM customers.
Patents, patents, patents
Asetek’s strong position in the liquid cooling market comes thanks to their patented technologies. Many of those patents have been invalidated, and others are de to expire. This gives Asetek’s competitors and customers space to create new liquid cooler designs that utilise aspects of Asetek’s patented designs. As such, some Asetek customers may soon produce their own in-house liquid cooler designs, and Asetek’s existing competitors will have more design freedom. Expect big changes to come to the PC liquid cooling market in the near future.
Are Asetek in trouble?
Yes, Asetek are in trouble. They can no longer rest on their laurels and their previously patented technology. That said, Asetek are not simply letting this change happen. The company are now exploring new technologies that will help maintain their dominant position within the PC liquid cooling market.
At Computex 2024, Asetek revealed an “AI Optimised” cold plate design that was created using Fabric8Labs metal 3D printing tech. Asetek has invested heavily into this new technology to keep their technology ahead of their competitors. The AI revolution will soon change the liquid cooling market.
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