10 Most Promising New Technology Stocks According to Hedge Funds

4. Nextracker Inc. (NASDAQ:NXT)

Number of Hedge Funds: 32

Nextracker Inc. (NASDAQ:NXT) is one of the most promising new technology stocks according to hedge funds. The stock was held by 32 hedge funds in Q3 2024, as per Insider Monkey’s database. It is a technology company that specializes in solar tracking technology and software solutions designed for large-scale solar energy projects. The solar tracking technology allows solar panels to follow the sun as it moves across the sky. Thereby maximizing the amount of sunlight the panels receive, which in turn increases energy production.

Key products by the company include NX Horizon, a single-row solar tracker that is efficient and cost-effective, NX Gemini, a dual-row tracker that supports two rows of solar panels, and TrueCapture, an advanced software system that uses machine learning to optimize how the trackers operate, adjusting their position based on real-time conditions to improve energy yield.

The new energy appetite of the United States is growing, according to a report by the Solar Energy Industries Association published on September 9, in Q2 2024, the US solar market installed 9.4 gigawatts of capacity, up 29% year-over-year. Moreover, solar energy accounted for 67% of all new electricity-generating capacity added to the US grid in the first half of 2024.

Considering the increase in demand for solar energy in the United States, which is one of the biggest markets for Nextracker Inc. (NASDAQ:NXT), the company has been doing great in terms of capitalizing on the market. The company reported strong performance in the second quarter of fiscal year 2025, achieving its seventh consecutive quarter of double-digit revenue growth. The company experienced a 29% increase in revenue for the first half of fiscal 2025 compared to the previous year. While the quarterly revenue of $636 million improved 11% year-over-year. Management attributed revenue growth to increased demand for its products mainly due to its quality and low installation costs.