Good day to all of you, this is a deep dive into a a real sleeper! Enter BeammWave, who's innovation will likely underpin a great chunk of wireless communication in the future.

This will be a lengthy one so hang on - but what's five minutes of reading for early retirement in a couple of years, eh?

Ticker: BEAMMW.B or BEAMMW_B (Nasdaq First North growth market, apparently ticker varies a bit from broker to broker and you might need to activate certain features or markets with your broker to be able to trade)
Current Price: 5,25 SEK / ~$0.50 USD
Market Cap: ~$15.7M USD
Industry: wireless communication

The TL;DR:

• They have a technology that literally everyone in the mobile industry and beyond will need to be able to compete in the higher radio frequencies
• Their solution is superior to anything out there today; faster, smaller and more energy efficient, at an affordable price point
• Competition to what they do is basically zero, with extremely high barriers of entry due to a literal minefield of patents that they own
• Their tech fits in smartphones, routers, base stations; you name it, it will fit
• They have the absolute dream team working on this
• Applications range from mobile, base stations, CPE, operators, satellite, self-driving cars, military, radar etc. the possibilities are endless as long as data needs to be transmitted wirelessly

This is a recipe for TSLA levels of success.

Who are they?

BeammWave is a Swedish tech company developing and industrializing a technology called digital distributed beamforming, which makes wireless data transfer significantly faster and more efficient, and solves the looming issue of bandwidth running out on the frequencies in use today. It's the sorely missing key for the mobile industry to utilize higher radio frequencies at scale, something all the big players (think Apple, Qualcomm, Samsung etc.) are frothing at their mouths to get at.

Their key product is a compact (3x3mm) and affordable (1-2USD/chip) chip system with fully integrated antennas, enabling reliable wireless communication on the mmWave-spectrum without the bulk and subpar performance of the solutions in use today.

Last summer they became the world-first to showcase an over-the-air demo of digital distributed beamforming, and having protected their solution with over 40 patents so far they aim to own the entire market (think being able to own Bluetooth* outright, imagine what that would be worth...)

*ok, apples to oranges, since Bluetooth is a protocol and distributed digital beamforming is a technical solution, but the common factor is both represent a paradigm shift in the industry, something that everyone will need to adopt to be competitive

How are they pulling it off?

For being a small company in such a daunting industry they have some serious talent behind them – the team consists of telecom industry OG's, several of them having held key roles in developing bluetooth in the 90's and leading development of 5G at some of the biggest firms in the telecom industry, one of their engineers holding over 2000 patents to his name alone.

These guys garner a lot of respect in the industry and due to that they've had access to discuss their idea with all the big players for years already. As the CEO, Stefan Svedberg, himself says, everybody who's anybody in the industry knows who BeammWave are and what they are working on. Their personal merits have awarded them opportunities to work directly with chip manufacturers who normally don't do prototyping for small startups, and gain access to special tooling and materials usually reserved for the big guys. They also have a company member inside the organization for mobile broadband network standarization, 3GPP, with significant influence there, and they obviously aim to position digital distributed beamforming as the standard for mmWave operations in the future.

Simply put, BeammWave have positioned themselves as thought leaders when it comes to mmWave. The tech they own has sprung out of a decade of research at the University of Lund and what speaks to their clout is they have been able to attract global talent from the likes of Samsung, Huawei etc. to work for them instead.

The exciting bit is nobody's really caught onto them outside the industry. Yet.

The geeky bits underpinning the value

Wireless communication is a MASSIVE market. The game has always been the same; to get faster speeds, more bandwdith and lower latency with less power consumption and at a cheaper price.

Data traffic's been increasing at breakneck speed through the adoption of smartphones, developments in computing, AI etc. to the point where current frequencies in use are simply running out of bandwidth. Moving to higher frequencies, what are called mmWave, is unavoidable in order to solve the data bandwidth problem.

The issue is once you go up in frequency, the reach and penetration of radio waves diminish significantly. Huge investments have been made into mmWave only for the tech to disappoint time after time, to a point where the whole field has gotten a bit of a bad rep. This is because the industry has been trying to solve it the wrong way.

The tech in use today is called analog beamforming; the hardware is bulky, expensive, slow at catching a signal, sensitive to spatial change, needs an unobstructed line of sight and simply doesn't work well. From the beginning the founders of BeammWave argued that analog beamforming was a stillborn idea – it simply would not work in real life. They argued the intelligent way to do beamforming was digital – and this is something everyone would agree on, but, the retort was, it wouldn't be cheap enough. It wouldn't be energy efficient enough. It might just be impossible, full stop.

Well, turns out it wasn't. And nobody else was ”crazy” enough to go for it.

Where are they at today?

Since 2023/4 BeammWave has been out of their research and development phase and are now selling their development platform called ADP1, and are working with customers on projects that aim for production. According to the CEO they're on track to have a fully commercial product ready this year, with production of scale ramping up in 2026.

Currently, four major companies are working with them and evaluating their product;

1. Molex, which is the second largest electronic connector company in the world,
2. Alpha Networks, with whom they are working on a fixed wireless access solution together,
3. SAAB, with whom they are working on innovations with military-civilian synergies, and
4. an as of yet undisclosed customer, who has revealed they're an Asian component manufacturer and industry leader in mmWave, with over 70 000 employees and 10+ billion USD in revenue. All the hints point toward muRata Manufacturing. In the event the rumors are correct, I can't stress how huge that would be. It could imply that both Apple and Samsung are nibbling on BeammWave's solution already, since muRata supplies them both.

Keep in mind BeammWave are the only ones in the world with this kind of tech - something everyone in the industry needs to be able to compete in the mmWave frequencies. And they've protected their solution with over 40 patents so far, and more incoming. It will be extremely difficult, bordering impossible for anyone to bypass their intellectual property with a distributed digital beamforming solution, no matter who you are.

So what about the MONEY??

In interviews the CEO, Stefan Svedberg, has repeatedly been asked to tease some numbers on how their revenues will scale, but understandably he's been quite vague. His exact words from a few months back were that the numbers get pretty ridiculous pretty fast if you start to do math...

But, since I'm not the CEO, let me pull some numbers outta my ass anyway.

Current stock price is sitting around 0,50USD with a mkt cap of around 13,7 million at a 30 million share float. Say BeammWave chips get into 20% of the smartphones before 2030, around 300 million units per year. The estimate is they'll need 6-10 chips per unit at 1-2USD/chip, that's 6-20USD per device. Revenue would be totalling 1,8 – 6 billion USD a year.

Let's lowball a P/E of 5. That would mean a market cap of 9 – 30 billion USD, in other words 300 – 1000 USD/share at the current float. PWOAH! Yeah, that went apeshit pretty fast..! And that's only the mobile market. I won't pull any more numbers outta my ass, but to me this is looking like one of the plays of the decade.

Why is the current valuation so low? Well, personally I think they'd already be due for a 10x with what they have so far, but they are a very tech-oriented company and what they do is very, very complex. I don't think a lot of people understand the scope of their business case and they haven't been shouting about themselves from the rooftops either. There's no sexy one-paragraph way of explaining the proposition. On top of that, they're trading on the rather obscure Nasdaq First North growth market, and not many eyes have been on them so far. But once their stuff starts going to mass production – oh boy.

Disclaimer: Not financial advice and am no expert on this whatsoever – just trying to provide something of value for you guys instead of repeating the same pre-mooned tickers that are on the front page over and over. Do your own DD, but if this thing hits, don’t forget the little guy when you’re sipping cocktails on a beach somewhere.

P.S. There are some really good company presentations where the CEO does a much better job of presenting than I've done, here are a couple of links to start you off:

https://www.redeye.se/research/1057442/beammwave-interview-with-ceo-stefan-svedberg-2
https://www.redeye.se/video/event-presentation/1063185/beammwave-ceo-stefan-svedberg-presents-at-redeye-technology-life-science-day-2024-december-3

Disclosure; I'm balls deep into BeammWave stock, plus I owe a huge debt of gratitude to u/vantrivs for bringing this company to my attention late last year – in this very r/pennystocks.