Next Century Growth Investors, LLC, an investment Management Company, released its “Micro-Cap Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. Equity markets were mixed in the second quarter, large-cap stocks continue to outperform small-cap stocks. The strategy returned (0.95)% (net of fees) compared to a (5.56)% return for the Russell Microcap Growth Index. The Strategy outperformed in health care and technology and underperformed in consumer discretionary during the quarter. The firm believes that the economy’s trajectory and the outlook for earnings forecasts will determine the future course of the market. In addition, please check the fund’s top five holdings to know its best picks in 2024.
NCG Micro-Cap Strategy highlighted stocks like Arteris, Inc. (NASDAQ:AIP), in the second quarter 2024 investor letter. Arteris, Inc. (NASDAQ:AIP) is a provider of semiconductor interconnect intellectual property (IP) and System-on-Chip (Soc) Integration Automation software solutions (SIA). The one-month return of Arteris, Inc. (NASDAQ:AIP) was -1.54%, and its shares lost 2.08% of their value over the last 52 weeks. On September 6, 2024, Arteris, Inc. (NASDAQ:AIP) stock closed at $7.05 per share with a market capitalization of $276.763 million.
NCG Micro-Cap Strategy stated the following regarding Arteris, Inc. (NASDAQ:AIP) in its Q2 2024 investor letter:
“Arteris, Inc. (NASDAQ:AIP) is a leading provider of semiconductor system IP technology, which is used by companies to help develop their own semiconductor devices. AIP is seeing secular growth from an increasing number of companies developing semiconductor devices in the auto and data center end markets, which we believe, along with an enhanced business model, will enable the company to deliver strong and predictable revenue growth and positive cash flow going forward.”
A lab technician inspecting intricate SEM micrographs of semiconductor interconnects.
Arteris, Inc. (NASDAQ:AIP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Arteris, Inc. (NASDAQ:AIP) at the end of the second quarter which was 16 in the previous quarter. Second-quarter revenue of Arteris, Inc. (NASDAQ:AIP) surpassed expectations, reaching $14.6 million, a 13% increase from the previous quarter. While we acknowledge the potential of Arteris, Inc. (NASDAQ:AIP) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Arteris, Inc. (NASDAQ:AIP) and shared the list of small publicly traded semiconductor companies to buy. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
