white outer space satellite

AmpliTech Group (NASDAQ:AMPG) stock is a chart and company that caught our attention recently. AmpliTech designs, develops and manufactures custom leading-edge RF components for the Commercial, SATCOM, Space, and Military markets. The company has also developed new products for the 5G/6G wireless ecosystem and infrastructure. In addition to this rapidly emerging market, AMPG has also developed solutions for Quantum Computing.

Earnings

AmpliTech announced their earnings for the third quarter and first nine months of 2021. Q3 revenue was $1.05M compared to $1.15M in Q3 2020 and $1.02M in Q2 of the current year. They secured $1.2M in new orders for LNA technology in Q4 2021, increasing AmpliTech’s order backlog to a record $3.35M as of November 15. This illustrates a growing demand for their industry leading products. This backlog represents contractual hardware and engineering services anticipated for delivery over an estimated six-month period. AmpliTech’s cash and equivalents and marketable securities totalled $27.1M, demonstrating they now have the financial strength required to engage with large global customer prospects previously outside of their reach.

Semiconductors

This capital will be used in development of a new line of semi-conductor solutions. The company announced the opening of an MMIC chip design centre based Texas. As of November 2021, it is operational and led by a team of highly experienced chip design engineers. The semiconductor industry has seen huge demand following the shortage of chips this year. Nearly all electronic devices use semiconductor chips, from cars to TVs to computers to phones and medical systems. Fawad Maqbool, CEO of AMPG, commented, “We find that semiconductors today do not provide the performance network providers need to achieve true 5G data rates in excess of 1Gb per second. This initial round of products will enable the company to offer high-performance MMICs for the wireless 5G cellular, satcom, and military markets.

Quantum cloud computing

AMPG could be one of the key companies for the US to win the race for providing Quantum Cloud computing products, both for businesses and individuals. Cloud computing is used by 70% of businesses. Via Satellite wrote in a recent article, “cloud is targeting the high-stakes satellite market as cloud innovators seek early-market advantage by offering cloud solutions to a sector poised to redefine broadband connectivity.” AmpliTech Group look poised to capitalise on this as big names such as Google, Microsoft and Amazon cloud firms all start to build alliances with leading satellite companies.

Worth a shot?

AmpliTech Group has a great foundation to build off this growing demand that they cater for. The stock looks to be forming a higher low, a good indication of strength after a downtrend. The stock looks like it will open todays trading at around $4.50. AMPG has an all-time high of around $20. Short term, it may not go back to this level, but I believe $6 could be a target for the next months. Recent weeks have shown increased volume as the stock has risen in price, validating this move up. The demand is growing for the company and the stock.

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