American tech titans Apple, Amazon, Microsoft, chip-maker Nvidia, Google-owner Alphabet, Facebook parent Meta and Tesla have soared in value over the past decade and gained renown as the Magnificent Seven. But the gang is looking rather less magnificent lately, tumbling in value since President Trump took office.
Most UK technology stocks have long been outgunned by their American cousins. But there are some which, while not on the same scale as the Mag 7, may produce splendid returns. Their shares are undervalued, their technology is world-class – and canny investors are taking notice.
Aurrigo
Aconvoy of Aurrigo autonomous pods in Milton Keynes
In the dark days of Covid, forecasters claimed air travel would never be the same again. They were right: it is even busier. Flights are full, airlines are expanding and airports are barely coping.
Baggage handling is a case in point. Airports are on track to spend around £7.5 billion ensuring luggage is transported properly, but millions of suitcases are lost each year.
Coventry-based Aurrigo has devised highly sophisticated automated electric vehicles, known as Auto-Dolly Tugs, that can carry baggage around airports and are faster, safer and greener than older motorised trucks.
The business floated in 2022 with one airport customer, Changi in Singapore. Today, there are seven, including Gatwick, Cincinnati in America and Schiphol in the Netherlands. Founder and chief executive David Keene is also working with UPS at its East Midlands hub, the group’s global headquarters outside America.
Cargo is an enormous market, with UPS alone operating some 2,400 flights a day. Aurrigo has pioneered a cargo vehicle that is smarter, nimbler and more secure than anything on the market.
Aurrigo has had a torrid time on the stock market, floating at 48p, shooting up to £1.60 and now languishing at 47p. The price drastically undervalues this business, making it a long-term buy for adventurous investors.
Traded on Aim Ticker: AURR
Contact: aurrigo.com
Intercede
Cybercrime is responsible for an estimated £6trillion of losses each year – more than the economies of Britain and Germany combined. For individuals, such crimes can be devastating. For companies, they can be disastrous. And for governments, they can be catastrophic. Intercede, an Aim-listed company based in Lutterworth, Leicestershire, helps businesses and state departments protect themselves from cyber criminals.
Chairman Royston Hoggarth has signed up an array of top-ranking customers including the US Departments of Homeland Security, Defence and State, closely linked to the FBI and CIA.
Trump acolytes such as defence secretary Pete Hegseth may seem to show scant regard for cyber security. But across the US government, rigorous protocols have been created to protect data against malign interference. Today, all federal agencies, contractors and suppliers must follow these Federal Information Processing Standards (FIPS). Intercede’s software helps them to comply and demand is growing, not just in America but worldwide.
In the UK, Intercede works with the Ministry of Defence, the NHS and several High Street banks. Continental clients range from Airbus to the European Commission and the firm has been winning business in Asia and the Gulf, including oil giant Saudi Aramco.
Intercede has also developed the largest independent password-checking database. This shows businesses and government bodies whether employees’ emails and passwords have been hacked.
Shares topped £1.95 in January. Now they are £1.48, hit by concerns about prospects since Trump took office. Recent updates suggest those fears are overdone. The shares should rebound and then some.
Traded on Aim Ticker: IGP
Contact: intercede.com
Insig AI
In January, a five-year-old technology company, Diginex, listed in America at $4.10 a share. Today, its shares are $92 each, valuing the firm at more than $2 billion.
Diginex aims to help companies stay on top of environmental, social and governance regulations and to become more sustainable.
Here in the UK, Aim-listed Insig AI provides similar services and users believe its AI-powered technology is the best in the business. UK watchdog the Financial Conduct Authority became a customer this month, several big firms are enthusiasts and there is a growing pipeline of orders from companies and asset managers.
Insig AI shares are priced at 23p and the company is valued on the stock market at just £27million.
This should change. Insig AI has built a database of information on 6,000 companies going back to 2015 and put it all into smart, machine-readable format. That means customers, such as investment institutions, consultants and regulators, can access the data online, ask questions related to it and swiftly assess whether companies are following rules around sustainability, transparency and related issues.
A type of ChatGPT for the financial services industry, the toolkit has won praise from many quarters. Jobs that would take three weeks of manual sifting through paperwork can be completed in less than an hour.
Insig AI also helps big financial houses manage data more effectively, a kind of digital spring clean that is increasingly in demand.
Historically, however, it has found it hard to translate interest into orders so, in May, chairman Richard Bernstein stepped into the chief executive’s role. Shares have more than doubled since then but there should be plenty more to come.
Bernstein has a long history as an activist investor, achieving success at firms as varied as property group Grainger and money printer De La Rue. With £5 million of his own money invested, he is motivated to do even better here.
Traded on Aim Ticker: INSG
Contact: insig-ai.com
Alfa Financial
Cars are pricey items, with even basic models costing around £25,000. To make them more affordable, many drivers use asset finance, essentially a loan that’s repayable over several years.
A vast market, including vans, tractors and other vehicles, the industry is highly regulated, relying on technology every step of the way. Firms spend around £3.5billion on software, and London-based Alfa Financial is a leader in the field, operating in 37 countries, including the US. Alfa’s presence in America has spooked some investors, while others worry that the firm will suffer if President Trump’s policies spark a global economic downturn.
Chief executive Andrew Denton rebuffs such fears. First, technology is critical for asset finance firms, even if demand slows down. Second, Alfa helps lenders to become more efficient by simplifying and streamlining their processes. Third, the company’s customers operate across the world, spanning all areas of the vehicle finance industry. The group’s track record backs up Denton’s thesis. Customers stick with him through economic cycles, the firm’s order book is at a record high and there are high hopes for this year and beyond.
Alfa pays attractive dividends too. The shares are £2.10 but brokers believe they should be worth at least £3. If they are right, this could be just the right time to buy.
Traded on Main Market Ticker: ALFA
Contact: alfasystems.com
