12 Small-Cap Semiconductor Stocks to Buy Now

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5. Photronics Inc. (NASDAQ:PLAB)

Market Capitalization: $1.4 billion

Number of Hedge Funds: 23

Photronics Inc. (NASDAQ:PLAB) is a leading manufacturer of photomasks, essential components in the semiconductor fabrication process. Photomasks are high-precision quartz plates that contain microscopic images of electronic circuits. The company produces photomasks for various applications, including integrated circuits (ICs), flat panel displays (FPDs), and other advanced technologies.

On December 11, 2024, Photronics Inc. (NASDAQ:PLAB) reported its Q4 FY 2024 results (FY ending October 2024). For the quarter, revenue was $223 million, down 2% year-over-year (YoY) but up 6% sequentially, driven by growth in high-end IC and Generation 10.5+ FPDs. Adjusted net income was $37.1 million, or $0.59 in EPS. The company provided guidance for Q1 2025, expecting revenue between $208 million and $216 million and adjusted EPS between $0.43 and $0.49. Photronics Inc. (NASDAQ:PLAB) remains optimistic about future growth, driven by megatrends such as AI, supply chain regionalization, and edge computing. Commenting on the healthy sequential growth, company CEO Frank Lee highlighted the positive outlook and said:

“Photomask demand trends were favourable as we ended the year and we are cautiously optimistic that these trends will continue into 2025, driven by megatrends such as AI, supply chain regionalization, and edge computing. We believe our competitive advantages and market leadership will allow us to grow along with the photomask market growth trajectory. Combined with financial discipline to expand margins and improve cash flow, we are well positioned to continue growing profitably and creating shareholder value.”

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