10 Best Lidar Stocks To Buy Now

6. MicroVision, Inc. (NASDAQ:MVIS)

Number of Hedge Fund Holders In Q2 2024: 7

MicroVision, Inc. (NASDAQ:MVIS) is an American company that exclusively focuses on lidar applications for autonomous driving and autonomous use. It is the second worst AR stock to buy according to short sellers as we covered in our intro. MicroVision, Inc. (NASDAQ:MVIS)’s financial position is far from stellar. The firm $96.7 million in trailing twelve month operating expenses are quite high, then its latest cash and equivalents of $56.8 million. This means that MicroVision, Inc. (NASDAQ:MVIS) might have to raise debt in the future, which will impact its profits. Or, the firm might issue equity which can dilute the value for existing shareholders. However, MicroVision, Inc. (NASDAQ:MVIS) does benefit from a leading edge product portfolio. Its lidar systems are at the top of the pack with a point score of 14 million points per second, and with competitors operating on older nodes such as 1550 nanometers or 905 nanometers. Yet, 90% of MicroVision, Inc. (NASDAQ:MVIS)’s revenue came from two customers as of H1 2024, with one accounting for 58% of the sales. This exposes the stock to significant headwinds if MicroVision, Inc. (NASDAQ:MVIS) faces a setback and a customer switches suppliers.

MicroVision, Inc. (NASDAQ:MVIS)’s management shared important details for potential customer diversification in the Q2 2024 earnings call:

“We remain engaged in seven RFQs with automotive OEM for passenger vehicles. MAVIN and MOVIA S are engaged in all conversations. The pace for reviews and decisions remain with the OEMs. Startup production for these high volume programs are targeted towards the end of this decade, so decisions are pushing out into later this year.

We are cautiously optimistic about these targets to decisions, but remain aggressively engaged. A new era of engagement has opened up with multiple OEMs across Europe and U.S. OEMs are engaging with us to investigate the opportunity for a more strategic hardware and software exploration in developing a more customized MAVIN and MOVIA S design for L2 products. We are actively working on this as it represents near-term revenue opportunities as well as delivering a more custom sensor for their B-sample needs for RFQs. We are working on exploring integration of MAVIN behind windshield as well as a new 180 degree field of view MOVIA S sensor that would integrate into a car body with small bumps resembling the current camera module bumps. These are exciting opportunities and I see them as potentially a faster path to RFQ decisions.”