Can Oxygen Absorption Forge a Wireless Revolution?Peraso Inc. (NASDAQ: PRSO) operates at the intersection of geopolitics, physics, and semiconductor innovation in the 60GHz millimeter-wave spectrum. As Western governments dismantle Chinese telecommunications infrastructure through "Rip and Replace" initiatives, Peraso emerges as a strategic beneficiary—offering North American-designed silicon fabricated through TSMC that meets "Clean Network" standards. The company's technology leverages a peculiar quirk of atmospheric physics: oxygen molecules absorb 60GHz signals within 1-2 kilometers, creating both a limitation and a strategic advantage. This phenomenon enables spatial isolation for frequency reuse and inherent physical-layer security, positioning Peraso's solutions as ideal for dense urban wireless networks, military tactical communications, and next-generation VR/AR devices requiring multi-gigabit wireless bandwidth.
The company's leadership, veterans of the Intellon-to-Atheros-to-Qualcomm acquisition chain, brings proven expertise in standardizing emerging connectivity technologies. Peraso holds nine Standard Essential Patents for IEEE 802.11ay (WiGig), creating licensing leverage across any manufacturer building compliant high-speed wireless devices. Despite Q3 2025 revenue reaching $3.2 million (up 45% sequentially) and expanding gross margins by 56%, the stock remains deeply undervalued, as evidenced by Mobix Labs' hostile $1.30/share takeover attempt, which represents a 53% premium. The company has successfully transitioned from its legacy MoSys memory business to become a pure-play 60GHz specialist, securing design wins in defense applications and partnerships with major fixed wireless access providers.
Peraso's investment thesis is based on three pillars: geopolitical tailwinds that are forcing Western infrastructure operators toward trusted suppliers, the irreplaceable physics of 60GHz in solving spectrum congestion, and a patent portfolio that positions the company as either a future licensing powerhouse or an attractive acquisition target. The primary risks include aggressive cash burn requiring frequent dilution, execution challenges in reaching fragmented WISP customers, and the inherent volatility of micro-cap semiconductor stocks. For investors seeking asymmetric exposure to the "Wireless Fiber" revolution, where capital-efficient mmWave bridges replace expensive fiber deployments, Peraso represents a contrarian deep-tech opportunity in an overlooked corner of the connectivity market.
