Could Atomera Incorporated NASDAQ: ATOM defy the odds?
Stock Name and Stock Trading Exchange Platform
Atomera Incorporated – NASDAQ (NASDAQ: $ATOM)
ATOM is a US-based MST technology producer, chipmaker, and licensing company for proprietary processes in the semiconductor industry. It similarly operates in the Asia pacific.
The company is research-intensive and has 307 patents to its name, with many others pending.
Its trademark product Mears Silicon Technology TM (MST®), is an unprecedented quantum-engineered material that significantly improves transistor performance & efficiency in electronic gadgets.
It focuses on technology at the atomic level as the name suggests. The industry has evolved a lot over the years with many innovations seen in the latter century.
ATOM is pioneering a radical shift in the 21st century, advancing Moore’s law which was slowing down.
It was founded by Dr. Robert Mears in 2001 as Mears Technologies and went public in August 2016.
The company is headquartered at the heart of Silicon Valley in Los Gatos, California.
Recent Most Important News about Atomera Incorporated – NASDAQ (NASDAQ: $ATOM)
The stock has recently plummeted to record lows as the chip sector as a whole is lagging in the past week.
This has led to massive sell action and even insider selling by CEO Robert Mears, which has not been received well by the market.
He sold stock worth $174K and this is a small fraction of his total holding, thus the alarms were misinformed.
ATOM management team presented updates to investors during a financial conference held on the 9th of August.
The company also announced its quarterly in the same month, which was not that exciting, with no solid figures at the moment.
A partnership with an anonymous chipmaker was the main highlight of the earnings call, with a major development believed to be underway in the deal. More on that later.
The company is already deploying its MST tech in the industry. It licensed the technology to a Semiconductor foundry, working together to integrate MST into transistors.
Additionally, it developed MSTcad and liaised with Synopsys to enable the exploration of improved semiconductor materials and processes.
Forbes ranks ATOM as one of America’s best 100 small companies in 2022.
Current Position of Atomera Incorporated – NASDAQ (NASDAQ: $ATOM)
The company is a visionary that is looking to shape the electronic landscape in a way like never before. It is charting forward blind with no immediate financial gains.
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Research in material science with the aim of a breakthrough in the sector is actively ongoing. Some of its peers in the space include ThinkFire Inc., Grand Idea Studio Inc., and Mito Technology.
ATOM has top-tier semiconductor companies as its client base, the likes of Micron, NVidia, and a dozen others, who recognize the potential to be unleashed in MST technology.
To understand this, we must dive into Semiconductor Physics and devices. You don’t need to be a quantum physicist to learn the basics of what ATOM is doing.
Ok, we all know that semiconductors and the transistor (BJT) in particular is the building block of modern electronics. Advances have been made through the years to reduce the size of the chip sizes by a drastic measure.
Moore’s law is the famous postulate that governs this relation and posits that the number of transistors in dense integrated circuits doubles after every two years.
The transistor era began in the 50s and is still reigning.
Today, large-scale integration and very large-scale integration are used in building 5th-generation computers.
In recent years, the peak level of reduction seems to have been reached and the chip size cannot reduce any longer, at least not until we reach the particle level.
A whole new realm dictates the behavior of atomic and sub-atomic particles, and that is the infamous quantum mechanics.
The semiconductor industry is now at crossroads and will be forced to take a seismic shift to further its developments.
MST technology improves the nature of the standard silicon transistor by increasing carrier mobility and drive current.
Thus, it is more effective as it leads to higher transistor performance. Lower power consumption and better reliability.
The physics aside, the economics of the technology is also very appealing as it lowers the cost compared to conventional chips by reducing die size, improving yield & gives a higher throughput.
ATOM is where tech companies were during the dot com bubble.
NVidia CEO who is a leader in the industry believes that the semiconductor industry has reached its limit.
He believes the future is the understanding of the elementary particle and their interactions, which is not yet possible, and AI is expected to contribute to this.
His sentiments are shared with other players in the industry. Former Intel CEO Brian Mathew is quoted saying:
It is easy to see why the pace of innovation is slowing.
Intel can increase the density of transistors by shrinking its process technology to make them smaller. Just how small can they go?
ATOM could pave way for the development of another superior technology, Quantum Computers.
Big tech players like Google and IBM are already invested heavily and believe this is the future of computers.
ATOM is strategically positioned to be ahead of the curve in this new wave of change.
ATOM Stock Price Chart
$ATOM is now slipping to lows not experienced in years. As o the 17th of October 2022, it is trading at $7.68, nearing its 52-week low.
The overall market sentiment seems bearish at the moment and not just for the ATOM but for global indices.
Its trading exchange, the QQQ has been hit hard this year, with a lot of shorting experienced.
The stock is now very attractive at the dirt-cheap price at the current price. The fall has contributed to many external factors.
Internally, shareholders trust the stock long-term but see it as a risk asset in the current stormy times.
ATOM is on a roller-coaster ride this year, with the price going every which way, rising and falling b double digits.
It has been decimated over the year, down by at least 60% year-to-date. It hit a high of $32, in Mid-November last year. ATOM is greatly below its fair value and a steal at this point.
Sentiment on Atomera Incorporated – NASDAQ (NASDAQ: $ATOM)
With the fear & greed index now leaning left towards extreme fear, investors are evading emerging markets with no substantive returns and are opting for high dividend assets.
The semiconductor industry is known for being notoriously slow in progression. Extreme patience is required, which is a rare commodity right now.
Renowned investors are rallying behind the stock, including three confirmed hedge funds. Kenneth Griffins Citadel takes the lead with ownership worth $1. 3M of the common stock.
ATOMERA’s non-existent profit margins are also holding it back from its full potential. A commentary reads:
If Atomera announces cash flow, shares will be at $100 to $200 in a few days.
The financial market is terminally ill, and the stock is suffering the ripple effect. It is however not alone, as the giant chipmaker $TSMC is also caught up in the bearish mix.
Pros of Investing in Atomera Incorporated – NASDAQ (NASDAQ: $ATOM)
- Astoundingly cheap – The stock is now at its lowest in years, this could be a level that is never seen again. It’s a great place to store value at the moment.
- Cutting-edge Tech – It is in the final frontier of ushering in a new era. Besides its MST trademark, the company unveiled the new Mears Silicon Technology Smart Profile (MST-SP), in November last year which will improve 5v analog transistors.
- Well-Networked – ATOM licenses to the world’s largest semiconductor companies and has an impressive portfolio of patents.
- Huge market – The company cut across a variety of sectors which it could positively impact. These include Telephony, 5G, Infrastructure, & IoT. The semiconductor market alone currently stands at just a little shy of half a trillion USD.
Cons of Investing in Atomera Incorporated – NASDAQ (NASDAQ: $ATOM)
- Cyclical market – Tech is now poised to enter into recession and downsizing is being seen. The slowdown will mean less capital flows into the sector, at least temporarily.
- Low returns – Only stockholders who have held the stock for at least five years have benefitted. It has virtually no revenue, which tends to turn off some investors.
Profits for Atomera Incorporated – NASDAQ (NASDAQ: $ATOM)
It is typical for tech companies in the initial phase not to post significant margins and ATOM is no exception. It is still receiving funding to run its daily activities.
The company announced its Q2 results for the year in August. It surprisingly beat EPS estimates by +7.11, despite its current state.
Net income for the quarter decreased by -20.26% and was valued at -$4.48M. Operating expenses went up by +19.8%, recorded at $4.45M.
EBITDA also shrank by -11.08%, coming in at -$4.11M. The balance sheet is also quite shaky at the moment with decreasing cash & assets over the year, while total liabilities increased.
The debt-to-equity ratio is still a good 0.27.
The company will eventually make a switch once progress is made. Keen eyes are watching the stock, and this could be a game-changer once it does.
It is often said that the four most dangerous words in investing are:
This time it’s different.
The famous Shakespearean quote, ‘The past is Prologue’ suggests that history repeats itself and those who take no heed are doomed to repeat it.
All the great Fortune 500 companies have been in the same position as ATOM is today.
Naysayers who dismissed the potential impact, rushing for immediate gains have lived with dire regrets. Amazon, Facebook, and other start-ups are fine examples of long-term plays.
The semiconductor sector is expected to grow by 5% annually in the coming years and will be accretive in the long haul.
The company is one of the best in what it does and as advances in materials engineering become more important, the globe will be looking at companies like ATOM.
Profits will be flowing in the near-term, once steps are taken by the involved parties.
Growth Likelihood and Potential for Atomera Incorporated – NASDAQ (NASDAQ: $ATOM)
Necessity is the mother of invention, and this could not be truer for ATOM. Humanity is dependent on the electronics age which is now waning away.
The fourth industrial revolution is here, and it will be spearheaded by developments in small-scale interactions.
Nanotechnology and quantum engineering will be pivotal in the coming age.
It is time to go back to the era of the atom and this time to stay. What the great intellects like Einstein, De Broglie, and Feynman began will come to fruition in this century.
ATOM embraces a mission that is larger than life and could fundamentally alter the way the world works for decades to come.
The company is literally up against all odds at this point. Unchartered waters, recessionary environment, and political crises.
It needs to thoroughly grind in the coming months to stay afloat. Tough times never last but tough people do, and all this will reinforce its GRIT.
The company is lucky to have strong funding which will ensure it can run smoothly.
It received at least $35M in cash from its last round of funding which is a pretty significant amount. Taunton Depot, LLC is its main funder.
As capital gets tight, cautious spending will have to be exercised.
A little progress could be a lot in terms of the share price, and this will skyrocket in the coming years.
The stock has massive potential if it beats the hurdles ahead, it is a throwaway price at the moment.
Overall verdict on Atomera Incorporated – NASDAQ (NASDAQ: $ATOM)
With a tiny market cap of $181M, the company is highly undervalued. It could rise exponentially in the coming days as faith is restored in the markets.
Many large investors are about to go shopping as the bear market takes hold. ATOM is an essential item to add to the list as it’s a great value play.
Analysts covering the stock indicate that it is a strong buy with the huge price cut.
Forecasts show that the price could reach a median of $22 in the next year, more than a 300% upside.
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