We recently published a list of the 11 Best Penny Stocks to Invest in Under $1. In this article, we are going to take a look at where Ecarx Holdings Inc. (NASDAQ:ECX) stands against other penny stocks to invest in under $1.
Earlier on February 12 this year, Chief Investment Officer at Cetera Financial Group, Gene Goldman, discussed how he thinks small-caps are a good investment. Goldman thinks that the Fed is now a friend to the market instead of a foe, even if not the best of friends. This stance came from the anticipation that although the Fed might not lower rates this year, they’re not expected to raise them either. The Fed had projected four rate cuts in September last year, but this was later lowered to two in December. Goldman now thinks that market expectations now suggest just a zero to one rate cut in 2025, and the end-of-year interest rates are likely to be around 4%. According to him, higher inflation and the uncertainty because of tariffs are what’s causing the Fed’s cautious approach.
In this conversation, Goldman highlighted the healthcare sector with its advancements in biotech, personalized medicine, and health solutions. He also addressed concerns about AI investments and acknowledged that while AI has faced challenges this year, especially within the MAG7, AI’s long-term potential remains intact. This is especially fueled by the ongoing data revolution. Goldman recently started using an acronym for his new investment strategy, called SHAQ, to support 4 sectors — Small Caps, Healthcare, AI, and Quality investments. Goldman is enthusiastic about small caps due to their cheap valuations and improved business sentiment. Goldman thinks that small caps remain attractive even without rate reductions because of their valuation, although, of course, they could benefit from rate cuts as well. Goldman thinks that quality investments are crucial in this investment strategy as well.
Our Methodology
We used the Finviz stock screener to compile a list of the top penny stocks that were trading below $1 as of April 10. We then selected the 11 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A technician in a lab coat soldering chipsets to power the company’s infotainment head units.
Ecarx Holdings Inc. (NASDAQ:ECX)
Share Price as of April 10: $0.89
Number of Hedge Fund Holders: 19
Ecarx Holdings Inc. (NASDAQ:ECX) develops a full-stack automotive computing platform to shape the interaction between people and cars by rapidly advancing the technology of smart mobility. It offers SoCs, central computing platforms, operating systems, and software. It recently entered into a strategic partnership agreement with Black Sesame Technologies.
In Q4 2024, the company made RMB 1.5 billion in sales of goods revenue, which was a 16% increase year-over-year due to the strong demand for its Antora series and Makalu computing platforms. These accounted for ~29% of the total sales of goods revenue. The Antora series, particularly the Antora 1000, is a key product for the company. By the end of 2024, the company had shipped ~500,000 Antora series units.
This number is expected to cross 1 million units in 2025. This platform offers automakers a cost-effective way to integrate digital cockpit and driving functionalities into a single board. The Antora 1000 is deployed in many Geely models, such as the Galaxy EX5. It is also used in the Hongqi Tiangong 05, which highlights its adaptability across different car manufacturers.
Overall, ECX ranks 2nd on our list of the best penny stocks to invest in under $1. While we acknowledge the growth potential of ECX, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ECX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
