Autonomous driving technology is all the rage in the auto sector, and plenty of innovative companies are looking to elbow their way into this burgeoning market, says Bryan Perry, editor of Micro-Cap Stock Trader.
indie Semiconductor (INDI) provides automotive semiconductors and software solutions for advanced driver assistance systems, connected car, user experience, and electrification applications. The company has a wide array of products that underpin new automotive applications.
They include devices for ultrasound for parking assistance, in-cabin wireless charging, infotainment and LED lighting for enhancing the user experience, and telematics and cloud access for connectivity.
Moreover, indie focuses on the fastest growth mega trends in auto. They feature electrification, advanced driver-assistance system (ADAS), and user experience. The company uses a fabless business model, enabling it to be asset-light and minimize capital expenditures while focusing on its core competitive strengths in designing and engineering.
indie is currently selling its products to more than 10 Tier-1 auto suppliers as an approved vendor. This is huge because Tier-1 vendors are suppliers to many of the top auto manufacturers worldwide. indie has shipped more than 140 million chips since its founding in 2007 and has passed rigorous quality standards from more than 20 major auto manufacturers.
Revenue for 2023 is forecast to grow by 128% to $110 million and the company looks to break even on profits in 2024. The company conducted a round of debt financing in early January that keeps it in a good financial position to continue its rapid rollout of indie’s suite of chips and software. With a market cap of $900 million, indie’s valuation is at the high end of the range. But the stock has big upside potential from its recent price of $7.70.
Action to take: Buy indie Semiconductor (INDI) at market.
