12 Small-Cap Semiconductor Stocks to Buy Now

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6. nLight Inc. (NASDAQ:LASR)

Market Capitalization: $525 million

Number of Hedge Funds: 21

nLight Inc. (NASDAQ:LASR) provides advanced laser solutions for industrial, microfabrication, and aerospace and defense applications. The company specializes in designing and manufacturing high-performance semiconductor lasers and fiber lasers, which are crucial components in various applications, including material processing, medical devices, and defense systems.

By investing in research and development, nLight Inc. (NASDAQ:LASR) strives to drive innovation in laser technology, positioning itself to meet the evolving demands of its target industries and achieve sustainable growth. However, the company is currently facing short-term headwinds. On January 14, it provided preliminary Q4 2024 results, which were significantly below earlier expectations. The company expects Q4 revenue to be between $46-$48 million, falling short of its previous guidance range of $49-$54 million. This shortfall is attributed to continued weakness in industrial markets, execution challenges in microfabrication, and delayed defense product deliveries. Consequently, both gross margin and adjusted EBITDA are anticipated to be significantly below guidance.

Despite these challenges, nLight Inc. (NASDAQ:LASR) CEO Scott Keeney remained optimistic about the aerospace and defense sectors, highlighting good visibility across multiple programs. Despite the near-term headwinds in some of its commercial markets, management remained confident in the company’s near- and long-term growth prospects in aerospace and defense.

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