r/EnSilica

Hard to comprehend that as I'm looking at the closing price of 108p today, I caught myself wondering if I can still buy the dip in the morning.

As some readers may recall, last September I made the bold assertion that EnSilica could be worth 13x its share price at the time. Back then the company was valued at 38.5p (≈$0.52) a share and following a series of positive developments since, it is now trading on the OTC Markets at $1.07 (≈79p). That progress in my opinion is the early stages towards 13x and beyond, and given much has happened since September I thought I would outline my opinion today on why this promising semiconductor specialist could be worth over £5.00 / $6.79 a share by 2030.

EnSilica is a semiconductor designer, with a fabless business model like Nvidia, Broadcom and Marvell and partnered with companies such as TSMC, Global Foundries, Arm and Cadence Design Systems. They are developing a world class reputation for high-value, high-margin chips such as the AST5000 chip at the heart of AST SpaceMobile’s Block-2 BlueBird constellation satellites. In addition to their reputation they are in possession of and developing intellectual property and expertise for chips essential to modern life. Satellite communications, post-quantum secure computing, automotive, industrial, healthcare and notably a suite of chips for satellite user terminals, a multi-billion dollar industry, where EnSilica has just signed its largest contract to date for potentially in excess of $50m¹. I anticipate this will be the first of a number of notable contracts in this space.

What surprises me still is how EnSilica currently trades at such a discount to its peers, at about 40% according to recent research by Matt Butlin of Allenby Capital². Matt goes on to say ‘Applying a sector median multiple of 3.5x 2027 revenues implies a valuation of 110.5p [≈$1.50] with significant further upside available on a takeout basis.’

I came to a similar conclusion last year when assessing EnSilica and even now the relative discount to the semiconductor industry is staggering considering the progress EnSilica has made in the last six months in particular. EnSilica currently trades at a forward price-to-sales (PS) ratio of about 3 for the financial year (FY26) ending this month, which compares favourably with the average ten year PS of 4.5 for the British and 6.4 for the US semiconductor industries according to Simply Wall St data.

Furthermore MDA Space paid a 13x multiple of sales for EnSilica’s competitor Satixfy last year, and with EnSilica being one of a few companies worldwide (and possibly the only European firm) developing the entire satellite user terminal chipset (RF beam-formers, mixers, digital beam-formers, modems) along with corresponding satellite payloads, it isn’t beyond the realms of possibility that EnSilica may also command a 13x multiple on acquisition. Looking at it another way, EnSilica’s competitor in the post-quantum encryption market SealSQ Corp currently trades at a forward PS of 18.1 according to Simply Wall St. The addition of EnSilica’s anticipated and government grant funded secure processor for critical infrastructure can’t come soon enough!³

In the last six months we have seen EnSilica announce a record trading update for the first half of the financial year (FY26) ending this month. A further trading update anticipated imminently will hopefully confirm record results anticipated for the full year, along with the firm confirming it is in a far stronger position financially following a significantly oversubscribed fundraising recently ‘to accelerate new products and projects and its growing contract pipeline’⁴. I would also not be surprised to see EnSilica confirming material progress on its statement last November confirming ‘ambitions for the medium term (3 to 5 years)’ of ‘annual revenues in excess of £60m and longer term (6 to 10 years), our order book and opportunities give us extended aspirations of £100m of revenues.’⁵

EnSilica’s largest contract announced to date in the satellite user terminal market paves the way for potentially more orders in this space, especially so given what Ian Lankshear, CEO & Co-Founder, stated in the recent H1 FY26 trading update webcast in January. ‘We already have four chips sampling with customers, with further devices in development, and we have a number of funded engagements with user terminal manufacturers and satellite operators who are evaluating our chips in funded engagements—as in, they're funding us to support them. We're also working with multiple user terminal OEMs in terms of their responding to operators' RFIs, using our chipsets. So, a very exciting area, lots of potential for future revenues, very high revenues when those constellations get launched.’

With potentially accelerated progress in this sector (and the various others EnSilica is specialised in) in part thanks to growing critical mass following contract wins and improved financial arrangements, I hope to see EnSilica with revenues comfortably exceeding £60m / $81m in 2030. Assuming £60m revenue, achieving a share price of £5.00 / $6.79 will therefore require a PS multiple of about 10. Stretching yes, but far less than the 13x MDA Space paid for Satixfy, and less than peer Filtronic currently trades at, which is over 11. It is also substantially less than Nvidia’s current PS of 22, Broadcom’s current PS of 29, and Marvell’s current PS of 17.6 according to Simply Wall St data.

All considered EnSilica still offers tremendous value in my opinion. And while I do not expect the share price to rise in a straight line I do expect the patient investor will be richly rewarded in the coming years.

May fortune favour the brave,

Mark aka Double Bubbler

¹ https://www.londonstockexchange.com/news-article/ENSI/major-spacetech-contracts/17559666
² https://wp-allenby-2020.s3.eu-west-2.amazonaws.com/media/2026/04/260423-EnSilica-plc-ENSI.L-Space-industry-contract-Allenby-Capital.pdf?c5301=on
³ https://www.londonstockexchange.com/news-article/ENSI/ensilica-to-develop-critical-infrastructure-chip/17326647
⁴ https://www.londonstockexchange.com/news-article/ENSI/result-of-oversubscribed-placing-and-subscription/17501286
⁵ https://www.ensilica.com/wp-content/uploads/2025/11/272132-EnSilica-AR-WEB-version-2.pdf

Requested an increase in maximum holding and was told it’s reviewed monthly so time to use my dormant isa from Freetrade to continue to invest. Hopefully once the limit is raised enough I can transfer across.

STMicro targets more than $3 billion in space chip revenue as demand grows

"We are just in the early innings ​of this market," STMicro executive Remi El-Ouazzane told analysts in a conference call.

Players such as Starlink, AST SpaceMobile (ASTS), Amazon Leo (AMZN) are pushing low-Earth orbit satellite communications from a niche towards mass-marketed ​broadband and direct-to-cell services, and potentially orbital data centres.

STMicro hopes its decade-long supply partnership with ​Starlink in satellites and user terminals will give it a first-mover advantage to keep as much ‌of ⁠its near 90% market share as possible as this market rapidly expands, attracting competitors.

4 May 2026, Nathan Vifflin, Reuters

It's rare an investment I make actually goes up but was quite neat that the daily average was almost exactly at the level I bought it at. Just a pity T212 won't let me buy any more for some reason but it's good to see a bit of green in the individuals

https://www.share-talk.com/ensilica-plc-aim-ensi-ceo-ian-lankshear-speaks-to-zak-mir/

Ian Lankshear, CEO of EnSilica on share talk, speaking about the EnSilica's recent landmark development contracts with a leading European satellite company to support it's next generation satellite network.