10 Best Semiconductor Penny Stocks To Invest In Right Now

3. indie Semiconductor, Inc. (NASDAQ:INDI)

Number of Hedge Fund Holders In Q3 2024: 12

indie Semiconductor, Inc. (NASDAQ:INDI) is a specialty semiconductor company that sells a variety of camera and image sensors. These include cameras and LiDAR sensors, and they provide the firm with exposure to the budding autonomous driving market. indie Semiconductor, Inc. (NASDAQ:INDI) benefits from its product diversification since cameras and LiDAR have divided the car industry. While Tesla and Elon Musk are adamant that cameras provide the better solution, other car and autonomous systems manufacturers are betting on LiDAR. However, its exposure to the car industry coupled with the fact that worrying news such as token management salaries have made indie Semiconductor, Inc. (NASDAQ:INDI)’s shares lackluster in 2024. The stock is down 29% year-to-date, but the firm’s third-quarter earnings report marked a turnaround of sorts when the shares soared by 60% in the aftermath. This was on the back of several factors such as a 2025 guidance of $300 million for a 40% growth that met analyst estimates. However, with indie Semiconductor, Inc. (NASDAQ:INDI) having only $100 million in cash and $158 million in debt, the firm has to ensure it can generate sales or risk financial and share price trouble.

Baron Funds mentioned indie Semiconductor, Inc. (NASDAQ:INDI) in its Q3 2024 investor letter. Here is what the fund said:

“Indie Semiconductor, Inc. (NASDAQ:INDI) is a fabless designer, developer, and marketer of automotive semiconductors for advanced driver assistance systems (ADAS) and connected car, user experience, and electrification applications. Indie’s stock fell during the quarter as it guided 2024 revenue growth below Street expectations, as auto production is expected to be incrementally worse, and excess inventory in the automotive supply chains of its customers has delayed indie’s new chips from ramping into high-volume programs. Despite these near-term headwinds, indie is outperforming peers who are seeing significant year-over-year sales declines. It has not suffered a program cancellation for any intact car programs, and it continues to win new sockets in future car platforms, positioning the company for strong growth over the medium and long term, supported by its $6.3 billion design win backlog, of which $4.6 billion is in ADAS applications. Indie has several large-volume programs set to ramp beginning in early 2025, including a marquee radar-related win, the biggest program in the company’s history, which we believe will drive a return to outsized growth in 2025 (indie doubled revenue each year from 2021 through 2023). We believe indie can continue to significantly outpace the broader industry and will approach $1 billion in revenue by the end of this decade, all supported by its contracted visibility, and its stock will re-rate as rapid growth returns.”