10 Most Oversold Semiconductor Stocks in 2024

7. IPG Photonics Corp. (NASDAQ:IPGP)

Share price return in 2024: -32%

Number of Hedge Fund Holders: 31

IPG Photonics Corp. (NASDAQ:IPGP) is engaged in the development, manufacturing, and sale of high-performance fiber lasers and diode lasers for various applications, mainly in materials processing, medical, and advanced applications. The company markets its products globally to OEMs, system integrators, and end users.

The company’s share price declined by approximately 15% following the announcement of its Q4 2023 results on February 13, 2024. Despite reporting better-than-expected results, the outlook for 2024 was weak. The company faced ongoing soft industrial demand in many major regions and lower sales in e-mobility applications in China. In Q1 2024, management highlighted delayed investments in electric battery capacity worldwide, soft industrial demand across most major geographies, and inventory management by some large OEM customers as factors affecting its performance.

The increasing demand for precision cutting, welding, and material processing across industries, particularly in the automotive and aerospace sectors, offers solid growth opportunities for IPG. However, the company has yet to see meaningful changes in trends. On February 11, the company announced its Q4 2024 results, reporting a 22% YoY decline in sales to $234 million, although sales were up 1% quarter-over-quarter. Following the results, a Citi analyst reiterated a Sell rating with a $62 price target for IPG Photonics Corp. (NASDAQ:IPGP) stock despite the stock trading near its 52-week low. The share price is down 11% so far in 2025.