SMALL CAP SHARE IDEAS: Seeing Machines nets repeat contracts as self-driving car industry advances16 Jan 2023 16:53
While you may conjure up images of sentient Teslas zipping around town when hearing the phrase 'self driving', the technology will likely see wider adoption in the heavy industries, warehouse fulfilment, construction and even the mining sector.
It's not hard to imagine AI-powered cranes and forklifts scooting around a development site, though it will invariably bring up a heated debate on the human cost of redundancy as automation becomes more and more embedded into our lives (here's looking at you ChatGPT).
Today's investors can gain exposure to tomorrow's technology by investing in the AIM-quoted, Australia-headquartered self-driving innovator Seeing Machines.
Seeing Machines, which corporate broker Cenkos recently said deserves a unicorn valuation, has a technology stack comprising AI algorithms and vision-based monitoring technology that enables machines to see, understand and help people.
Earlier this month, the group announced the successful integration of its in-cabin monitoring system technology (ICMS) with semiconductor solutions company Omnivision's OAX4600 system-on-chip (SoC) integrated circuit platform.
If that sounds confusing, here's something easier to chew on: Seeing Machines continues to sign repeat contracts with tier-one global car makers (that have to remain confidential for now).
In an industry as overbearingly regulated as the auto sector, where the lives of billions are at stake, netting repeat contracts is a huge green flag.
In November 2022, Seeing Machines revealed the scale of adoption of its tech.
Over half a million cars hit the roads fitted with the company's technology in the first quarter of 2022 alone, representing year-on-year growth of 204 per cent, or 25 per cent quarter on quarter.
'Our technology is well entrenched as market-leading and that is evidenced by the momentum we see in our dealings and importantly, the numbers,' chief executive Paul McGlone said at the time, adding: 'It is tremendous to see cars on road, fitted with our technology.'
Even more impressive is the fact that it is excelling where far larger companies have stumbled.
In October 2022, Ford pulled the plug on its support for the Argo AI self-driving car project, taking a multi-billion-dollar hit in the process.
'We're optimistic about a future for L4 ADAS (advanced driver assistance systems), but profitable, fully autonomous vehicles at scale are a long way off and we won't necessarily have to create that technology ourselves,' said chief executive Jim Farley.
As for Seeing Machines, its share price currently sits at 6.77p with a £281million market capitalisation. That unicorn valuation would suggest a 3.5x premium on the current market price.
https://www.thisismoney.co.uk/money/investing/article-11640891/SMALL-CAP-SHARE-IDEAS-Seeing-Machines.html
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