Indy Semiconductor Stock Is A Play On Automotive Megatrends

The merger with Thunder Bridge II SPAC helps it capitalize $2 billion of strategy backlog and an addition $2.5 billion in identified pipeline opportunities driven by deep relationships with Tier 1 automotive suppliers. The Company went public on June 11, 2021, peaking at a high of $11.90 before selling off. Indie “is at the forefront of the disruptive automotive megatrends spanning ADAS/Autonomous, Connectivity, User Experience and Vehicle Electrification. Today, Indie’s automotive semiconductor portfolio addresses a $16 billion market, according to HIS, which is expected to exceed $38 billion by 2025 driven by strong demand for silicon and software content in automobiles. Indie’s best-in-class, mixed signal SoC solutions are currently on 12 Tier 1 approved vendor lists, contributing to a strategic backlog position of more than $2 billion, defined as projected revenues based on existing contracts, design and pricing terms and historic production trends.”

According to their Summer 2021 presentation, Indie is in pursuit of the uncrashable car and is both standard and partner agnostic. The Company’s SOC platforms can be found in most of the top tier vehicle makers including General Motors (NYSE:GM), Ford (NYSE:F), Porsche (OTC:POAHY)), Ferrari (NYSE:RACE), Fiat Chrysler Hyundai, and Tesla (NASDAQ:TSLA). The Company has already shipped over 100 million devices in automotive Tier 1 companies. Indie platform supports the “Park Assist” feature on a Hyundai Sonata aired in the Feb. 2, 2020, Super Bowl LIV ad.

Indie address the four megatrends: Autonomous, User experience, Connectivity and Electrification. With autonomous, it reduces power by 10X and cost by 20X for LIDAR integration. With connectivity, it focuses on wireless charging, telematics, driver monitoring and cloud access. With user experience, it enhances Apple (NASDAQ:AAPL) CarPlay solutions, infotainment, and LED lightening. In referring to electrification, it has charging controllers and diagnostic solutions. Currently, the content per vehicle (CPV) opportunity is around $310 per vehicle, to rise to $975 per vehicle moving forward and up to $4,000 per vehicle in the future. This little known chip company is an under the radar long-term play for investors willing to take the risk of own a post-reverse merged SPAC.

Using the rifle charts on the weekly and daily time frames provides a precision view of the playing field for INDI shares. The weekly rifle chart has a downtrend with a falling 5-period moving average (MA) at $9.72 and 15-period MA at the $10.01 Fibonacci (fib) level. The stochastic has a mini pup attempt setting up for a make or break where the MAs can breakout if the 5-period MA crosses up through the 15-period MA. If the weekly stochastic crosses back down then the downtrend can continue towards the weekly lower Bollinger Bands (BBs) at the $8.66 fib, which may also start the BB expansion. The weekly market structure high (MSH) sell triggered on the breakdown under $12.45. The daily market structure low (MSL) buy triggers above $9.38. The daily rifle chart has been in a downtrend with a falling 5-period MA at $9.00 with 15-period MA at $9.33. The daily lower BBs are at $7.85. The daily stochastic is forming a potential mini inverse pup. Prudent investors can monitor for opportunistic pullback levels at the $8.66 fib, $8.12 fib, $7.74 fib, $7.24 fib, and the $6.48 fib. The upside trajectories range from the $10.84 fib up towards the $13.97 level.

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