8 Unstoppable Tech Stocks to Buy Now

5. Neonode Inc. (NASDAQ:NEON)

Year-to-date Share Price Gain as of September 10: 206.93%

Number of Hedge Fund Holders: 1

Neonode Inc. (NASDAQ:NEON) is a technology company that develops electronic components for various industries. The company develops advanced optical sensing technologies that enhance human interaction with machines. Its technology offerings include touchless interactions, infrared touch technology, object detection, and machine perception.

Its technology serves the automotive industry, medical industry, industrial automation, and military and avionics industries. Recently, Neonode Inc. (NASDAQ:NEON) has positioned itself to capitalize on its licensing business model. On May 22, the company announced its first licensing agreement for its Touch Sensor Module Technology to YesAR, a Chinese firm specializing in holographic display technology. The shift in business model began in late 2023 and this recent agreement marks a significant step towards the transition.

The technologies manufactured and licensed by Neonode Inc. (NASDAQ:NEON) are in high demand due to the recent trend of autonomous vehicles. Its ongoing Driver Monitoring Systems project with the Original Equipment Manufacturer (“OEM”) of commercial vehicles was one of the key drivers of revenue for the latest quarter. The revenue for the quarter ended June 2024 was up 18.7% year-over-year and reached $1.4 million.

Management has been working towards reducing the operating expenses and was able to reduce the expense by 1.6% year-over-year to $2.7 million. Neonode Inc.’s (NASDAQ:NEON) decision to focus solely on the licensing business resulted in an increase in product sale revenue as a result of last-time buy orders from its existing customers to keep their supply lines intact.

NEON has soared around 206% on a year-to-date basis and was held by one hedge fund in Q2 2024, being Citadel Investment Group, with a position worth $74,019.