4. Enovix Corp. (NASDAQ:ENVX)
Average Upside Potential as of November 26: 115.98%
Number of Hedge Fund Holders: 14
Enovix Corp. (NASDAQ:ENVX) is a leader in advanced silicon-anode lithium-ion battery development and production. It focuses on creating batteries that are safer, more efficient, and longer-lasting compared to traditional lithium-ion batteries. Its innovative battery technology is aimed at various industries, including wearables, smartphones, laptops, electric vehicles, and medical devices.
In the third quarter of 2024, the company made significant progress. It opened a new manufacturing facility in Malaysia, Fab2, to boost production. This facility is already shipping battery cells to customers. Additionally, it recently announced a development agreement with one of the top 5 smartphone manufacturers in China. This collaboration aims to develop a customized 100% active silicon anode battery, designed to power smartphones launching in late 2025.
This partnership marks a significant milestone for the company, solidifying its position in the smartphone market and demonstrating the growing demand for high-energy-density batteries. By leveraging its innovative technology, it aims to deliver batteries that can significantly enhance the performance and battery life of smartphones.
Financially, the company saw impressive growth. Revenue for the quarter reached $4.32 million, a substantial increase of 2,058.50% compared to the same period last year. Looking ahead, the company expects revenue to continue growing, with a projected range of $8.0 million to $10.0 million for the fourth quarter.
Its cutting-edge technology and commitment to innovation have positioned the company as a key player in the battery industry. With a focus on delivering high-performance batteries for various applications, including IoT devices, mobile devices, computing devices, and electric vehicles, Enovix Corp. (NASDAQ:ENVX) is poised to shape the future of battery technology.
Massif Capital Real Assets Strategy stated the following regarding Enovix Corporation (NASDAQ:ENVX) in its Q2 2024 investor letter:
“Enovix Corporation (NASDAQ:ENVX): Enovix is perhaps a bit of an outlier in our portfolio given that it is a battery manufacturer selling into consumer goods markets, but it fits nicely in what we believe to be the Massif Capital analytical sweet spot, businesses where science/technology, geopolitics/geoeconomics and energy/materials overlap. While some would argue that Enovix is inappropriate for a liquid real asset portfolio, the traditional definition of real asset businesses is dated.
Traditionally, real asset businesses are those that own and operate real estate, infrastructure, and natural resource assets. While this definition is workable, and most of the companies we invest in fall into one of these categories, it does not consider the ever-growing role of applied physical sciences in specific manufacturing fields, nor does it take into account the growing importance of material sciences and the changing nature of energy in general. Enovix is a material sciences business aiming to transform an ever-growing list of unique, highly refined materials into energy storage devices. They create value by understanding materials’ physical and electrochemical properties better than others…” (Click here to read the full text)
