indie Semiconductor (INDI) $7.35
BUY
indie Semiconductor is a compelling growth story in the auto-tech industry, with a decade of secular growth ahead.
It has durable competitive advantages of providing agnostic and holistic solutions to the ADAS (Advanced Driver Assistance Systems) segment of the auto-tech industry. As cars progress towards becoming computers on wheels, there are myriad ADAS solutions for traditional internal combustion makers to pure tech companies making electronics and autonomous vehicles. The industry is fragmented, finding its feet, thus having agnostic solutions is a big plus.
Another plus is that it’s run by a solid team of industry veterans with decades of production experience and deep roots in the auto-tech industry. Auto production is deeply regulated for safety standards, the sales and production cycles take years from design to production, and having veterans instead of tech-whiz kids is a big competitive advantage.
Also, indie’s small size (just $350Mn in sales in 2024) makes it nimble and well-positioned to take on difficult projects deemed unprofitable by large, rigid, complacent auto parts manufacturers.
indie’s pipeline has leapfrogged to $6.3Bn from $4.3Bn leading to forecasted revenue of $1Bn for 2028, about 5x 2023’s revenue. That was the clincher for me; its current market cap is only 1.4Bn, just 4x 2024 sales.
A COMPELLING BARGAIN.