The Nasdaq 100 is up 30% so far this year. It's not easy to find large-cap growing tech companies that haven't already seen significant stock accumulation.
I have been scanning the sector regularly to find attractive longer term opportunities. I remember the early 2000's very well and how accelerating revenue growth in E-commerce propelled so many stocks higher and higher.
The demand for computer power to fuel the growth of AI and large language models is here. Whether you believe it is all hype or the next paradigm of computers like me as personal computers were in the 80s and internet was in the 90s AI is getting investment.
Everyone complains that Nvidia(NVDA) is too expensive at 30 times sales. Here is some historical context on what large companies can do in a bull market.
In the 2003-2007 market Baidu (BIDU) had a price to sales ratio of 30 in spring 2010 and share price of $60. It still ran to $145 at its peak in 12' with a P/S of 44! that's a 100% return after it was at 30 times earnings. I'm not saying Nvidia will grow like that but another 25% return doesn't seem impossible.
In 2015 Alibaba BABA had a price to sales of 16 and the stock still went from $80 to $200 in 2018.
I've been looking at a lot of robotics companies, semi's, silicon miners and IT infrastructer stocks large and small. I've been tweeting about many such stocks for a couple months on Twitter. One such stock, STRC I made a substack article on. Subscribe to my Substack here to catch all my newest deep value net-net ideas.
One recent dive I did was Nauticus Robotics (KITT). It is in the ocean sensory robotics business.
-4.8 Current ratio
-+230% to +440% forward revenue growth,
-36% rev growth this current year
-EPS loss narrowing 6 quarters straight
-no dilution
-risk, only 2 customers
Another interesting thing I stumbled on was that Boston Dynamics a world leader in robotics is owned by Hyundai Motor (HYMTF). They bought the company in 2020 for $1 billion. I'm sure the current market value is much higher now in this AI frenzy.
ARB IOT Group ticker symbol (ARBB) an Asia based smart home technology company IPO'd in April of this year. There appears to be no analysts on it so it was hard to find guidance. I did see some very good growth.
There was 2,200% revenue growth in a six month period in 2022. Quarterly earnings growth was 158% per Finviz.com. The balance sheet has a 3.9 current ratio. I need to do some more research but it appears it may be below net current asset value too. The float is only 1.2 million.
Another lower float one I found was IBEX (IBEX). Earnings guidance has been steadily raised over the past few months. Earnings are expected to grow 11% next year. The forward PE ratio is 9.6.
Some of my favorite datacenter stocks are
Bel Fuse (BELFB), MongoDB (MDB), Vertiv Holdings (VRT) and a cloud company I like is Zscaler (ZS).
I currently own Nvidia through ETFs and am long KITT and STRC. I may buy or sell any of these stocks in the future. Here is an AI generated image of a modern datacenter.
