Corsair Gaming, Inc. (CRSR): A Bull Case Theory

We came across a bullish thesis on Corsair Gaming, Inc. (CRSR) on wallstreetbets Subreddit Page by Nattyvegan. In this article, we will summarize the bulls’ thesis on CRSR. Corsair Gaming, Inc. (CRSR)’s share was trading at $9.34 as of Jan 29th.

A gamer playing a game on one of the specialty retail company’s gaming platforms.

Corsair is poised for a strong comeback after a challenging 2023, with analysts and investors underestimating its potential. In Q3, the company lowered its EBITDA guidance by 30% and reduced revenue guidance by 15%, leading to downgrades and a depressed valuation, with a forward P/E of just 11.3x—half of the broader market’s 20x. This pessimistic outlook set the stage for a significant upside surprise. Recent trends, however, suggest Corsair may be on the verge of a strong rebound. Logitech’s latest report revealed gaming sales at unexpected highs, close to pandemic levels, with gaming revenue hitting $467 million compared to estimates of $393 million. Meanwhile, the upcoming release of NVDA’s RTX 5070, which is expected to rival the performance of the 4090, could spark a new GPU upgrade cycle. Google Trends also showed surging interest in gaming PCs and brands like Corsair during the holiday season. As the market’s expectations are at rock bottom, combined with a potential upgrade cycle and impressive holiday sales results, Corsair is set to outperform when it reports earnings on February 12. Given the low expectations and a favorable catalyst in the gaming space, Corsair offers an attractive risk/reward opportunity, and its stock is likely to beat forecasts in the upcoming report.

Corsair Gaming, Inc. (CRSR) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 5 hedge fund portfolios held CRSR at the end of the third quarter which was 7 in the previous quarter. While we acknowledge the risk and potential of CRSR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CRSR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.