3 ASX Listed Companies That Could be the Next NVIDIA

NVIDIA’s remarkable rise in the US stock market has been nothing short of extraordinary. Originally known for its dominance in gaming graphics, the company has evolved into a major force in artificial intelligence and data processing. From AI-powered research to autonomous vehicles, NVIDIA's graphics processing units (GPUs) have become the foundation of AI and machine learning, cementing its place at the heart of the tech world. This transformation has catapulted the company’s market valuation, making it one of the most valuable players globally.

However, after more than tripling in value over six months before reaching its peak in June, NVIDIA's share price has started to cool off, dropping over 20 per cent. For some Australian investors who feel they may have missed out, the question is: could there be an Australian equivalent ready for a similar meteoric rise?

Australia’s technology sector is brimming with potential

While the ASX might not have a company of NVIDIA’s size, Australia’s technology sector is brimming with potential, particularly when it comes to AI, software, and high-performance computing. Here are three ASX Listed companies that we believe could be the next big thing in tech.

Weebit Nano (WBT)

WBT has positioned itself as a significant player in the tech world with its next-generation semiconductor memory technology. As demand for AI and data-intensive applications grows, Weebit Nano’s innovative technology could see it rise to prominence, much like NVIDIA’s GPUs have done in graphics and AI processing.

While Weebit's share price has experienced a significant decline since peaking in March 2023, it has fallen over 70 per cent to now be trading around the $2.00 mark. The good news is that this is a strong support level that has historically served as a launching point for previous rallies. If price can stabilise and attract buying interest at this level, there’s potential for a rebound towards the $4.50 range.

BrainChip Holdings (BRN)

BRN is pioneering the development of neuromorphic computing, which mimics the human brain's structure and function to process information. This technology has the potential to revolutionise AI by making it faster and more energy efficient. If this technology gains traction, BrainChip could be positioned as a global leader in next generation AI hardware.

BrainChip’s share price saw an impressive surge of over 200 per cent in February this year, only to retrace back to its starting level of around $0.15, which is a crucial support level for the stock, serving as a key threshold for investors. If the price breaks below this support level, it may signal further declines. However, if price holds, we could see a significant rally.

Archer Materials Ltd (AXE)

AXE is pioneering developments in quantum computing with its 12CQ chip project. This cutting-edge technology aims to revolutionise computing power and efficiency. If successful, Archer could become a major player in the quantum computing field. While this sounds exciting, the share price has been on a long-term downtrend since August 2021, losing over 90 per cent. Eventually, the price will need to find a floor, and the $0.16 level appears to be a strong candidate. Since this level is still about 30 per cent away, it may be wise to watch and wait for a potential rebound.

While Australia's technology sector may still be in its early growth phase, companies like these demonstrate that the potential for a home grown tech giant is very real and very exciting. As the world continues to embrace AI and advanced computing, these companies could very well be the ones to watch, offering investors a chance to get in on the ground floor of the next big tech wave.

What were the best and worst-performing sectors last week?

The best-performing sectors included Financials, up 2.59 per cent followed by Real Estate, up 1.21 per cent and Information Technology up 1.02 per cent. The worst-performing sectors included Energy, down 9.07 per cent, followed by Materials, down 5.82 per cent and Utilities, down 3.28 per cent.

The best performing stocks in the ASX top 100 included Charter Hall, up 7.66 per cent, followed by Mirvac Group, up 5.88 per cent and Fisher and Paykel Healthcare, up 5.06 per cent. The worst-performing stocks included Minerals Resources, down 23.66 per cent, followed by Pilbara Minerals, down 18.86 per cent, and Paladin Energy, down 14.91 per cent.

What's next for the Australian stock market?

The All Ordinaries Index was down over 2 per cent early last week before rising the in the last two days to end the week down 1.23 per cent. Given the market failed to break above the all-time high, investors might be starting to question the direction of our market.

Last week saw a change in sentiment given that the All Ordinaries Index had closed higher on 12 out of 15 trading days from 5 August to now only be closing higher on four of the last eight trading days. Given the strong run from 5 August, it’s not surprising that the market is taking a breather. The question that remains is whether we will see a push from the buyers in the short term to break to a new all-time high

Last week, our market traded within a range of 201 points, and although it traded up in price on Thursday and Friday, it only rose 78 points or less than half of what it fell, which suggests some weakness in our market. That said, it is still possible we will see a move up to challenge the all-time high of 8375.80 points set in August. For that to occur, we need to see our market trade higher this week, and for that to occur, we need to see the materials sector rise, and the Financial sector needs to remain strong.

I have mentioned many times that when Financials and Materials rise together, our market will be bullish, and there is no reason to suggest that if these two large sectors move, we will not see a break of the all-time high and a sustained bull market until November.

Again, regardless of the market's broader direction, it's essential to stay focused on individual stocks, as that is what you invest in. It’s also important to have a well-thought-out strategy rather than follow the herd. This means having rules for buying, selling and actively managing your trades.

For now, good luck and good trading.

Dale Gillham is the Chief Analyst at Wealth Within and the international bestselling author of How to Beat the Managed Funds by 20%. He is also the author of the bestselling and award-winning book Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in all good bookstores and online.