10 Best Semiconductor Penny Stocks To Invest In Right Now

1. Indie Semiconductor Inc (NASDAQ:INDI)

Price as of March 5: $2.87

Number of Hedge Fund Holders In Q4 2024: 22

indie Semiconductor (NASDAQ:INDI) makes computer chips—and the supporting software—that power advanced driver assistance systems (ADAS), in-cabin user experience, and vehicle electrification applications. The company creates mixed-signal SoCs embedded in edge sensors that are used in Radar, LiDAR, Ultrasound, and Computer Vision applications.

indie Semiconductor (NASDAQ:INDI) recently made public its Q4 2024 financial results, which gives mixed signals. Revenue came in at $58.0 million, 7.5% higher than the previous quarter. However, the non-GAAP gross margin remained flat at 50.4%, and the operating loss (on a GAAP basis) was higher at $33.9 million compared to $21.6 million a year ago. The non-GAAP operating loss was $14.2 million, versus $2.4 million during the same period in the previous financial year.

But a look at the company’s business highlights provides a clue to the increased operational costs. indie secured two new design wins with OEMs in South Korea and China—front sensing and interior monitoring for the Korean OEM and multi-channel applications such as eMirror for the Chinese OEMs. The company also validated the performance of initial samples of its 120 GHz radar solution for in-cabin occupant monitoring. It also achieved ASIL-D certification (the highest level of functional safety) for its electrification ASIC.

To meet the increased demand, the company has added in-house photonics integration, packaging, and system test capabilities. This way, indie can offer customers complete photonics subsystems for rapid solution evaluation and production. The strategy strengthens the company’s position in the automotive sector, where the market for optical components alone is expected to reach $9.80 billion this year. This explains why the company tops our list of 10 best semiconductor penny stocks to invest in right now.

While we acknowledge the potential of indie Semiconductor (NASDAQ:INDI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INDI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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