Why Nano Dimension shares jumped 16.1% in June
Actions of Nano dimension (NASDAQ: NNDM) gained 16.1% in June, according to data from S&P Global Market Intelligence. The semiconductor 3D printing specialist’s stock gained ground thanks to strong momentum for the market at large.
After several months of volatile trading, growth-dependent technology stocks posted solid gains in June. the Nasdaq Composite The index climbed 5.5% in the month, and Nano Dimension stock rose as investors reclaimed tech stocks.
There doesn’t appear to have been much company-specific news behind Nano Dimension’s gains last month. The company received approval from the US Patent and Trademark Office on June 15 for “the manufacture of double-sided and multi-layer printed circuit boards by inkjet printing,” but the approval of the patent does not appear. not have had a significant correlation with the stock gains of Nano Dimension.
The Nano Dimension share price fell at the start of the July trading session. The company’s stock is down around 6.6% on the month so far.
Nano Dimension stock has made huge gains over the past year, with its price increasing by around 263% over the period. The company has managed to generate strong returns even though it has made substantial new share offerings to fund its business operations. The Israel-based tech specialist has increased its number of outstanding shares by more than 450% in the past year, and its market capitalization has increased by around 2,600% over the period.
Nano Dimension now has a market cap of around $ 2 billion and is valued at 395 times expected sales this year. Although the company is one of the first to apply 3D printing technologies for additive semiconductor manufacturing, investors should understand that the stock is a highly speculative bet at this point.
The company’s DragonFly LDM machines have been adopted by research institutes and corporate clients, and the 3D printing specialist recently released a next-generation version of the hardware. These machines allow the rapid creation of semiconductor prototypes and could make the development of chips and general technologies considerably faster and more efficient in some industries. However, Nano Dimension stock remains a high risk, high return investment, and there isn’t much visibility on how its business will grow over the next five years.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.