Atomera Could Be the Next Big Chip Play
When I look at technology stocks, my analysis includes both the present and the future potential. Companies that catch my attention are those developing advanced game-changing technologies.
An early-stage nano-cap that fits my criteria is Atomera Inc (NASDAQ:ATOM), which is looking to revolutionize the chip sector.
Atomera stock has more than doubled from its 52-week low of $2.45, but it is well off of its euphoric highs of $10.25 in August 2016 and $8.00 on March 24, 2018.
The current hesitation in ATOM stock provides aggressive traders an intriguing opportunity to accumulate shares, albeit the risk is highly speculative.
Chart courtesy of StockCharts.com
Atomera focuses on researching and developing advanced technologies in the semiconductor materials space, with a goal of licensing out the intellectual property.
Atomera has developed a patented, quantum engineered material named “Mears Silicon Technology” (MST). It is meant to be used by semiconductor companies to improve the performance and power efficiency of semiconductor transistors—the power behind computer chips.
For instance, smartphone makers are always looking for batteries that have longer operating lives.
The same goes for the chips that power tablets, laptops, and other standalone electronic devices that demand more powerful, smaller, and efficient chips.
The Bull Story for ATOM Stock
The demand for innovative technologies in the semiconductor space will drive the tailwinds in the sector and help a research-based company like Atomera.
The global semiconductor market broke above $400.0 billion in 2017 (nearly doubling in size since 2009), and it is targeting $500.0 billion. (Source: “Semiconductor sales revenue worldwide from 1987 to 2018 (in billion U.S. dollars),” Statista, last accessed June 15, 2018.)
The massive growth metrics are bullish for semiconductor companies and those developing advanced technologies, like Atomera.
Atomera has been Phase-3 testing ventures with six semiconductor companies. That stage is when companies look to integrate the technologies into their manufacturing process. Any success or progress could accelerate the research and lead to a higher price for ATOM stock.
Although investing in Atomera is not for the faint of heart, investors should always look at opportunities that could return massive gains if everything plays out right.
While there is no guarantee that Atomera’s Phase 3 testing will see any fruitful outcomes, investing in ATOM stock is all about the potential, not about financial metrics.