5. Enovix Corporation (NASDAQ:ENVX)
Number of Hedge Fund Holders: 22
Enovix Corporation (NASDAQ:ENVX) is engaged in designing, developing, and manufacturing lithium-ion batteries. Its 3D Silicon cell design utilizes a fully active silicon anode and is a significant advancement over traditional lithium-ion batteries.
As a result, the new batteries offer enhanced energy density and a longer lifespan, which makes them appealing for applications that require extended battery life and superior performance. The company takes its place among our best EV stocks.
In May, the company announced a significant development agreement with one of the world’s top five smartphone manufacturers by unit volume. The partnership has led to the manufacturing of EX-1M battery cells tailored to the specifications of the smartphone customer, with the first samples expected to be delivered in the second quarter of 2024.
High-volume production is set to take place at the company’s Fab2 facility located in Penang, Malaysia. It points to Enovix’s (NASDAQ:ENVX) capability to scale production efficiently and cater to the needs of major players in the smartphone industry.
Further reinforcing this positive outlook, TipRanks reported on September 13 that after an insightful meeting with CEO Raj Talluri, William Blair maintained an Outperform rating on the stock.
The analyst expressed enthusiasm about the rapid development of the company’s manufacturing capabilities, noting the sophistication of the equipment and the scale of operations observed during the grand opening of the facility in Malaysia. Moreover, Talluri hinted that a second smartphone manufacturer is nearing the finalization of a joint development agreement.
In the second quarter, 22 hedge funds had stakes in Enovix (NASDAQ:ENVX), with total positions worth $153.245 million. As of Q2, Electron Capital Partners is the most significant shareholder in the company with a stake worth $89.7 million.
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)
