Please ensure Javascript is enabled for purposes of website accessibility

This Semiconductor Company Is Thriving Despite the Chip Shortage -- but Don't Rush to Buy Just Yet

By Jose Najarro – Sep 17, 2021 at 10:30AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This semiconductor company provides numerous products to the automobile market.

Today's video focuses on a quick dive into Indie Semiconductor (INDI -1.95%), giving its fundamentals and current and future products and listing some of the yellow flags that this company might have. Indie Semiconductor provides numerous solutions for the automobile market and has multiple Tier 1 auto manufacturers as customers. Here are some highlights from the video: 

  1. Indie Semiconductor has solutions for autonomous driving, connectivity, user experience, and electrification. As cars become more intelligent, the need for sensors, interface solutions, and other semiconductor products also increases. The demand in this market has caused its most recent earnings revenue to grow over 148% year over year. It is important to note that revenue is still minimal, coming in at roughly $9.2 million.
  2. On Aug. 31, Indie Semiconductor entered a definitive agreement to purchase TeraXion, a market leader in photonic components. Indie Semiconductor is in the process of developing lidar solutions, which use numerous photonic products. The deal is expected to close in the fourth quarter of 2021.
  3. These three yellow flags are ones investors should consider before buying. First, Indie is currently unprofitable and does not have positive cash flow from operations. Second, the valuation might seem high. The company has a market cap of roughly $1 billion, and its most recent quarterly revenue was $9.2 million. Third, its small market cap and high valuation may cause the stock price to be highly volatile. 

Click the video below for my full thoughts and analysis. 

*Stock prices used were the closed prices of Sept. 15, 2021. The video was published on Sept. 16, 2021.


Jose Najarro has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Invest Smarter with The Motley Fool

Join Nearly 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

indie Semiconductor, Inc. Stock Quote
indie Semiconductor, Inc.
$8.05 (-1.95%) $0.16

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.