Close menu




October 24th, 2023 | 07:30 CEST

Nel ASA, Klimat X Developments, Nvidia - Huge potential in future markets

  • Sustainability
  • renewableenergies
  • Hydrogen
  • AI
Photo credits: pixabay.com

In today's world, characterized by technological innovation and the constant pursuit of more sustainable solutions, enormous potential for breakthrough developments is opening up in various sectors. Artificial intelligence (AI), hydrogen technology, and carbon credits, in particular, are focused on opportunities that could revolutionize the way we generate energy, manage resources, and combat climate change. These future technologies not only offer the opportunity to reduce environmental impact but also promise significant economic and social benefits. We look at three companies with considerable potential, each covering one of these areas.

time to read: 4 minutes | Author: Armin Schulz
ISIN: NEL ASA NK-_20 | NO0010081235 , KLIMAT X DEVELOPMENTS INC | CA49863L1067 , NVIDIA CORP. DL-_001 | US67066G1040

Table of contents:


    Jim Payne, CEO, dynaCERT Inc.
    "[...] The VERRA certification adds credibility to dynaCERT's emission reduction technologies by demonstrating compliance with internationally recognized standards for carbon emissions reductions and sustainable development. [...]" Jim Payne, CEO, dynaCERT Inc.

    Full interview

     

    Nel ASA - Quarterly figures ahead

    Hydrogen is seen as one of the key technologies for sustainable energy supply in the future. The technology has the potential to drive the energy transition and make a major contribution to reducing greenhouse gas emissions. Hydrogen can be used as energy storage to integrate renewable energies and as a fuel in mobility. In this context, hydrogen is a major growth market for the future, offering many opportunities. Nel ASA wants to benefit from this and has specialized in electrolysers. Recently, however, the market environment has clouded over considerably with the rise in interest rates.

    The Company has become the focus of short sellers. The reason for this is the recent lack of success stories. No significant orders have been reported since mid-July, and the next quarterly figures are due on October 25. The EU and the US want to promote hydrogen technology and have issued some ambitious targets. According to CEO Håkon Volldal, this requires a reduction in bureaucracy, accelerated approval procedures and access to funding. The Company also wants to gain a foothold in the US and has chosen Plymouth Charter Township as the site for its 4-gigawatt capacity Gigafactory.

    Most recently, they announced their participation in Project HEART, where they intend to develop hydrogen-powered aircraft with partner Protium and Haskel and deploy them on domestic flights in the UK. Nel ASA is also involved in many other innovative projects, but the Company is not yet profitable. The bears seem right with their attitude, but the hydrogen sector is volatile, and a large order can quickly turn the mood. The share continues to fall and is quoted at NOK 7.05. Negative comments from analysts have also contributed to this.

    Klimat X Developments - Projects Gaining Momentum

    More and more large corporations, such as Apple, Deutsche Bank and some oil multinationals, have already committed to becoming climate-neutral. These companies are obligated to present concrete plans for achieving their net-zero goals. One component of these plans is the purchase of CO2 certificates. This is where Klimat X Developments comes into play with its business model able to provide large amounts of carbon credits. To ensure this, the Company focuses on significant projects that involve reforestation and the restoration and protection of forests and mangroves, all at the same time.

    This requires agreements with governments and benefit-sharing arrangements. Just how closely the Company works with government officials was demonstrated at the groundbreaking ceremony in Suriname, a country in South America, when President Chan Santokhi participated in a tree-planting ceremony with other key government officials. Locally, they are working with their partner Pomeroon to protect and restore the mangroves, spanning 30,000 hectares. In addition, they have begun establishing coconut seedlings and planting trees on a 12.4 sq km farm area. Every tree planted is monitored using artificial intelligence provided by the University of Copenhagen through Tree Counter™. In addition to Suriname, the Company is active in Liberia, Yucatan, Guyana and Sierra Leone.

    In Sierra Leone, the Company has been cultivating an area of 1,400 ha for 2 years. The project benefits 170 smallholder farmers who have received payments for the 30-year leases. In total, land demarcations have been carried out on an area of 20,000 ha. Mangroves are also to be replanted in Sierra Leone. For this purpose, seedlings from the Company's own nursery were planted on a 10-ha trial area. The market for carbon credits is expected to grow from the current level of around USD 1 billion to USD 30 billion in 2030. The stock established an upward trend on October 16, which would only break with closing prices below CAD 0.115. Currently, one pays CAD 0.15 for a share certificate.

    Nvidia - Export Restrictions

    Until earlier this year, the term Artificial Intelligence (AI) was elusive to many people. Then ChatGPT emerged, and more and more people seemed to realize the groundbreaking technology awaiting humanity. AI has the potential to revolutionize almost all industries and create new opportunities. The demand for AI solutions is steadily increasing as companies and organizations realize AI's benefits. However, this requires computers with the appropriate hardware, and since Nvidia has long been considered a pioneer in AI, its stock price has jumped.

    Since October 17, the US government has once again tightened export restrictions to China. In the short term, the new requirements are unlikely to have much impact on Nvidia. However, things could look different in the long term, as the Company makes up to 25% of its sales from data centers in China. Sales for the A800 and H800, which were developed specifically for the Chinese market, now require approval. The trade war between the US and China thus continues. China has recently restricted exports of graphite, for example. The raw material is essential for the automotive industry, as graphite is used in many lithium-ion batteries.

    Although AI has made impressive progress, the technology is still in its infancy. Numerous challenges exist, such as the ethical issues surrounding AI, security and privacy. Still, AI is seen as a great growth market for the future, even with a possible recession. Nvidia's revenues and profits have risen decently, but the stock has also peaked at over 250% since the beginning of the year. It has lost over 20% from the high and currently stands at USD 408.30. If the gap is closed at around USD 306, it might be a good idea to take a closer look at the share because AI is expected to drive long-term growth for Nvidia.


    All three technologies presented have enormous growth potential. Nel ASA is still burning cash, which makes it hard to attract investors in the current environment. Klimat X Developments is under development and may provide large companies with carbon credits in the future. As more and more companies want to become carbon neutral the number of potential customers is growing. The era of Artificial Intelligence has just begun. Nvidia has leveraged its leadership and capitalized on the hype surrounding ChatGPT. The topic of AI is expected to remain in the spotlight in the coming years.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Armin Schulz

    Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

    About the author



    Related comments:

    Commented by André Will-Laudien on February 17th, 2025 | 07:35 CET

    Shooting star Rheinmetall continues to rise - Greentech stocks like Nel, dynaCERT, and Plug Power are in the starting gate!

    • Hydrogen
    • GreenTech
    • renewableenergies
    • Defense

    With the start of the security conference, they were back – the defense stocks. Rheinmetall thus exceeded the EUR 800 mark for the first time. The DAX 40 index is also doing brilliantly, currently at 22,600, well ahead of the NASDAQ. Now, rumors of peace talks are circulating, but the stock market is still not quite believing it. The losers of recent months were, not least, due to the re-election of Donald Trump, the greentech stocks. They were simply ignored in the face of the "climate change deniers" from the White House. But the charts no longer reached new lows. This is reason enough for us to refocus on these stocks. dynaCERT made its first leaps with the VERRA certification, but there is still much more potential. Selection remains key!

    Read

    Commented by Armin Schulz on February 17th, 2025 | 07:30 CET

    TUI stock weak after numbers – Nova Pacific Metals and Super Micro Computer fare much better

    • Mining
    • Commodities
    • Travel
    • AI
    • chips

    The latest quarterly figures from TUI disappointed investors. Despite optimistic booking forecasts, the share price corrected by up to 17% within two days after the expected revenue targets were missed. This raises questions about the sustainability of the travel Company's comeback, which most recently wanted to appeal to new customer groups with low-cost offers. Nova Pacific Metals and Super Micro Computer present a very different picture. Nova Pacific's share price rose by over 80% within three days. Super Micro is raising hopes of a turnaround despite delisting risks due to a new auditor and attractive AI prospects – supported by a low P/E ratio of 10. We take a closer look at the three companies.

    Read

    Commented by Fabian Lorenz on February 14th, 2025 | 07:00 CET

    SHARE PRICES are falling at Plug Power, Nel, and Hensoldt! BUY RECOMMENDATION for BMW partner European Lithium!

    • Mining
    • Lithium
    • Electromobility
    • renewableenergies
    • Defense
    • Hydrogen

    Buy opportunity or bankruptcy? Shares in Plug Power, Nel, and Hensoldt are under pressure these days. The former hydrogen favorites are facing one piece of bad news after another. After mass layoffs at Nel, the next catastrophe comes from Plug Power. Investors are also getting nervous about Rheinmetall, Renk, and Hensoldt. Is a correction looming? Analysts believe the correction at Hensoldt should be seen as a buying opportunity. At BMW partner European Lithium, analysts even see potential for a multiple increase in value. The stock, which focuses on lithium and rare earths, has gained traction, and the current consolidation offers an exciting entry opportunity. Even peace in Ukraine could benefit these companies.

    Read