1 ASX stock I think is just as hot as Nvidia (without all the hype)

There is an Australian business going as well as the US chip maker. Check this out.

| More on:
A woman smiles as she sits on the bus using her phone and listening to music through headphones.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There is no doubt Nvidia Corp (NASDAQ: NVDA) is one of the hottest stocks on the planet right now.

The computer chip maker is raking in sales from the artificial intelligence (AI) boom, beating expectations every quarter for the past year or so.

The stock has now rocketed 232% for the past year, incredibly rising 16.4% on a single day on Thursday US time.

Whether it can keep up this cracking pace is up for debate. Some sceptics are even suggesting the AI hype might already be a bubble.

So is there an ASX stock on fire like Nvidia?

Yes, there is. 

And it's going about its business with far less publicity.

What does Audinate do?

Audinate Group Ltd (ASX: AD8) is best described as an audio networking technology provider.

The company was born out of a team working at the government research organisation National Information and Communications Technology of Australia (NICTA) in the 2000s.

Co-founder and chief executive Aidan Williams remembers the genesis when he was playing music twenty years ago.

Source: Audinate

"I was constantly connecting my synth to a mixer, to a sound card, MIDI cables, all sorts of different connections," he said.

"To me, it seemed like a networking problem. Why make all those different connections when you could integrate it into a single network?"

The solution to this ended up as Audinate's flagship product Dante.

Dante is a networking protocol that is now embedded into many audio products. The "language" allows equipment like instruments and mixers to talk to another, to produce lossless audio.

The Aussie company that could be an 'unregulated monopoly'

The innovation is now dominant enough in the entertainment industry that Medallion Financial Group managing director Michael Wayne said back in 2021 Audinate "has the potential to be an unregulated monopoly".

"You can liken it to Bluetooth, if you like. Except Bluetooth isn't as good a technology and it's owned by a cooperative."

While not widely discussed in the financial media, investors in the know have already made plenty of money from Audinate shares.

Similar to Nvidia, the stock has soared over the past 12 months, now going for 155% higher.

Over the past five years, Audinate shares have returned a phenomenal 307%, for a 32.4% compound annual growth rate (CAGR).

And many experts believe the Aussie success story still has plenty of legs.

Broking platform CMC Invest currently shows none of the seven analysts covering the stock rating it as a sell. Three say buy, while four are recommending a hold.

Motley Fool contributor Tony Yoo has positions in Audinate Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Audinate Group and Nvidia. The Motley Fool Australia has positions in and has recommended Audinate Group. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

A young woman holds her hand to her mouth in surprise as she reads something on her laptop.
Growth Shares

These mid-cap ASX shares could rise 20% to 50%

Goldman Sachs is tipping these stocks as buys.

Read more »

A happy boy with his dad dabs like a hero while his father checks his phone.
Growth Shares

2 ASX growth shares that could turn $1,000 into $10,000 by 2034

I think these two stocks have a shot at being 10-baggers.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Growth Shares

These top ASX 200 growth shares can rise 10% to 50%

Analysts see major upside ahead for these buy-rated shares.

Read more »

A young man wearing glasses writes down his stock picks in his living room.
Growth Shares

I think this ASX growth stock has market-beating potential

I'm betting that this investment will crush the ASX over the next few years.

Read more »

A woman shows her phone screen and points up.
Growth Shares

1 ASX 200 stock I'm buying hand over fist despite the market's pessimism

I’ve been building up my position in this compelling stock.

Read more »

A man looking at his laptop and thinking.
Growth Shares

3 beaten down ASX growth shares that could be dirt cheap

Analysts think these shares are too cheap to ignore.

Read more »

Lion holding and screaming into a yellow loudspeaker on a blue background, symbolising an announcement from Liontown.
Growth Shares

3 roaring ASX shares to hold for the next 20 years

Analysts at Macquarie believe these market-beaters can continue to deliver.

Read more »

Happy woman on her phone while her electric vehicle charges.
Growth Shares

3 ASX growth shares to supercharge your investment portfolio returns

Analysts have good things to say about these top stocks.

Read more »