DUG Technology Ltd

The fund managers believe DUG Technology Ltd represents a high-potential, albeit slightly more aggressive, investment opportunity within the technology and high-performance computing (HPC) sector. In their opinion, DUG is Australia’s leading HPC provider, with strategically located infrastructure in key global hubs such as Western Australia, Houston, London, and Kuala Lumpur. They view compute power as an increasingly scarce and valuable resource, with demand expected to surge dramatically in the coming decade. Unlike traditional computing asset managers, DUG distinguishes itself by offering sophisticated proprietary software, enabling applications across various industries—from seismic imaging for oil and gas to genomic analysis and satellite data processing. While the company is currently viewed by the market as predominantly servicing the oil and gas industry, the fund managers believe this perception undervalues its broader technological capabilities and future growth trajectory. In their view, DUG is not yet being priced as a growth stock, despite its expanding relevance to sectors beyond energy. Opportunities such as the Square Kilometre Array Telescope project, which could require more than three times DUG’s current computing capacity, underscore the scale of potential demand. The fund managers believe this positions DUG for significant long-term upside, driven by innovation, diversification, and rising global HPC needs.