What happened

Shares of Nano Dimension (NNDM 3.68%) rose 51% in January according to data from S&P Global Market Intelligence. The 3D-printing technology specialist has been absolutely crushing the market over the last year, but trading of its stock also had to be halted late in the month due to high levels of volatility. What comes next?

NNDM Chart

NNDM data by YCharts

Nano Dimension provides 3D-printing machines and services tailored to the additive manufacturing of semiconductors and high-end electronics components. The new approach to chip manufacturing and modification opens opportunities for rapid chip creation and testing, and signs of momentum for the adoption of the Israel-based company's technologies have prompted explosive stock gains.  

Beams of light above a chip.

Image source: Getty Images.

So what

Nano Dimension has been raising funds through share offerings, and it completed a direct offering of 35 million shares last month in a sale that raised $332.5 million. The company's outstanding share count has surged over the last year, and the combination of new offerings and big appreciation for the share price have pushed Nano Dimension's market capitalization up roughly 35,600% over the last 12 months.

Nano Dimension's promising technologies and incredible valuation surge have set the stage for volatility. The company's trading was briefly halted on Jan. 25 in response to a steep sell-off, but the company still closed out the month with impressive gains. 

Now what

Nano Dimension stock has moved higher early in February. The company's share price gained roughly 2% in the month's trading so far. 

NNDM Chart

NNDM data by YCharts

Nano Dimension now has a market capitalization of roughly $2.9 billion and is valued at approximately 119 times this year's expected sales. This is a young company with a potentially revolutionary technology that has yet to see wide-scale adoption, so the fact that the business is operating at a loss and valued at a huge multiple of its near-term sales potential isn't particularly concerning.

The overall semiconductor space is seeing strong momentum right now, and Nano Dimension could wind up delivering an influential technology at a crucial time. The stock won't be a good fit for risk-averse investors, but the company is attracting a lot of attention and has intriguing avenues for growth.