You've probably never heard of Mark Lipacis. He hasn't been in the news headlines. He isn't a multibillionaire. But Lipacis, who works with big investment bank Jefferies, ranks as the top tech analyst of the last decade, according to TipRanks.
Lipacis' biggest winner in recent years was Nvidia. He still thinks shares of the giant chipmaker have a little room to run. But Lipacis is super-bullish about three other growth stocks right now.
1. Luminar Technologies
Luminar Technologies (LAZR 8.20%) develops light detection and ranging (LIDAR) technology. Its LIDAR systems are used to improve the safety of vehicles and to enable autonomous vehicles.
Lipacis thinks that Luminar's shares could soar 56% over the next 12 months. That's especially bullish considering the stock has already vaulted close to 55% higher so far in 2023.
Luminar's customer base includes Mercedes-Benz, Nissan, Polestar, and Volvo. The company claims more wins among major customers than all of LIDAR technology makers combined.
Why is Lipacis so optimistic about Luminar? In a word, growth. The company projects that its revenue will more than double in 2023. However, lofty growth expectations are already baked into the share price with Luminar stock trading at nearly 57 times trailing-12-month sales.
2. Impinj
Impinj (PI 2.19%) develops technology, including integrated circuits, that support the Internet of Things (IoT). It pioneered a type of radio-frequency identification (RFID) technology called RAIN.
The company's solutions connect over 60 billion physical items to the cloud. Impinj primarily sells its technology to original equipment manufacturers (OEMs) and original design manufacturers (ODMs). Its biggest customers are Avery Dennison and Arizon.
Lipacis' 12-month price target for Impinj reflects a 53% upside potential. However, the stock hasn't performed well so far this year, sinking nearly 20%.
Impinj could have great growth prospects. There are trillions of consumable items produced every year that could be connected to the Internet of Things. However, the company acknowledges that the market adoption of its RAIN technology has been slower than expected.
3. Advanced Micro Devices
Advanced Micro Devices (AMD 4.94%) is by far the biggest and most well-known company on the list. It's a leading global semiconductor maker with a market cap of close to $200 billion.
The stock has also been sizzling hot in 2023. AMD's shares have skyrocketed nearly 90%. This impressive rally has been fueled in large part by investors' seemingly insatiable interest in any company with an artificial intelligence (AI) tie.
Lipacis believes that AMD's momentum could continue. His 12-month price target is almost 20% higher than the current share price. In June, the Jefferies analyst maintained his buy recommendation on the chip stock.
Not everyone on Wall Street is as bullish about AMD as Lipacis is, though. Of the 31 analysts surveyed by Refinitiv in July, only 11 rate the stock as a buy or strong buy. Their main concern is probably that AMD's valuation could limit its upside prospects.
Best of the bunch
It's easy to see why Lipacis might like all three of these growth stocks. LIDAR, IoT, and AI are hot technologies. Luminar, Impinj, and AMD are leaders in each area.
But which is the best of the bunch? I think for many investors the answer will be AMD. Unlike Luminar and Impinj, the chipmaker is already highly profitable.
AMD stock could be due for a pullback after its big run so far this year. However, its long-term prospects appear to be good.