Early stage companies may pose higher risks to your overall portfolio, but they can also create the most attractive return opportunities. Perhaps you’re already invested in assets which generate more stable returns and are looking to supercharge your portfolio with some outliers. Or, maybe you’re willing to take riskier bets to capture alpha.
Either way, here are 2 ASX growth shares I would invest $10,000 in this month.
BrainChip – $4,500
BrainChip Holdings Ltd (ASX: BRN) is a leading company in neuromorphic computing, a branch of artificial intelligence that simulates neuron functionality. BrainChip is in its early stages of developing a neuromorphic system-on-a-chip (NSoC) called Akida. Akida is a hardware version of a biological neuron, making it much more advanced and efficient than current day technologies.
In the last month, the company’s share price has improved by 45% to $0.058 at time of writing. Though no new developments have been announced over the last week, Brainchip recently shared its key partnerships that will assist in bringing its product to market. ActualTech Media will continue to help the company capture mindshare in the chipset market while JPR Communications will provide support on the PR side.
The reason why BrainChip is such a promising investment opportunity, in my opinion, is due to its superior chip product. Akida provides more efficient neural processing and memory access than any other chip on the market. It has the ability to make traditional functions like machine training, learning and inferencing more efficient, while only using a fraction of the power.
PolyNovo – $5,500
PolyNovo Limited (ASX:PNV) designs, manufactures and applies polymer technology to a range of dermal regeneration solutions globally. Its flagship product, NovoSorb BTM, is a skin-supplement that treats dermal ailments like ulcers and partial or full wounds.
In the year-to-date, PolyNovo’s stock price has rocketed forward 312% higher to $2.47 at time of writing. Growth in the company’s market capitalisation is driven by its record sales across the globe. It currently operates in the US, Australia, New Zealand, UK and Ireland. Its plans to expand to Asian countries like Singapore, India and Malaysia are also well underway. It also has new products in development, including devices for hernia and breast repair.
Despite a net loss of $3.19 million, NovoSorb BTM grew its sales by 435% in FY19. It should also be noted that this net loss is a stellar 46% lower than the previous year, reflecting a clear path to profitability for this impressive biotech.
While the market capitalisation for both companies has increased dramatically in the year-to-date, it’s not too late to invest in October in these high-growth companies, as they head for international success in the new year.
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Motley Fool contributor Audrey Thehamihardja has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.