We recently compiled a list of the 10 Best Get Rich Quick Stocks To Invest In. In this article, we are going to take a look at where Navitas Semiconductor Corporation (NASDAQ:NVTS) stands against the other stocks.
What are the odds of a third consecutive year of gains in the US equity markets? Will investors enjoy outsized gains, as has been the case amid the artificial intelligence-driven rally? Those are some of the big questions in the aftermath of the S&P 500 posting a 23% gain in 2024, building on a 24% gain in 2023.
If history is anything to go by, the likelihood of US equity markets finishing at a high for a third consecutive year is low. “Historically, the likelihood is about 1 in 5,” says Sam Stovall, chief investment strategist at CFRA. While history tends to repeat itself, the chief investment strategist believes there is a high chance that investors will enjoy significant returns, as has been the case in the past two years.
READ ALSO: 10 Fastest Growing Mutual Funds in 2025 and 11 Best Lidar Stocks to Buy According to Hedge Funds.
Ryan Detrick, a chief market strategist at the Carson Group, expects the equity markets to continue edging higher, driven by a more substantial consumer and an economy that is growing at an impressive rate. Inflation edging lower is another catalyst that should bolster equity sentiments, especially regarding the Federal Reserve cutting interests.
“If inflation continues to improve a little bit and the economy stays strong, there’s no need to have interest rates where they are right now,” he says. “We think more cuts are likely, and that may unlock some animal spirits that might help small businesses and the housing market.”
The sentiments come when the US stock market is trying to break out of a consolidation that has been in place since the start of the year. While major indices are flirting with record highs, there is limited upside action as investors remain on edge amid a change of policy by the new US administration. President Donald Trump’s sparking fierce trade wars with allies over trade tariffs has triggered significant volatility in the market.
According to Morgan Stanley, companies that offer services should have better protection than those that manufacture goods as tensions over international trade increase. On the other hand, companies with significant international operations would be seriously threatened by the economic levies and tariffs imposed by the new Trump administration. However, some stocks, like those that offer consumer services, are better positioned to withstand an impending global trade war.
“Our preferred sectors in a world of supply chain strain driven by multipolar escalation and/or new tariffs vary by region — in some regions there are clear sector implications while in others it is about identifying relative opportunities within sectors. In the U.S., our Equity Strategy team prefers services (Financials, Software, Media & Entertainment, and Consumer Services) over Consumer Goods at the broadest level,” Morgan Stanley wrote in a research note to investors.
Our Methodology
We scanned the US market, focusing on stocks trading with a Beta of more than 2. We then trimmed the list by focusing on stocks trading for less than $5. The idea was to generate a list of volatile penny stocks that can generate returns in the short term. Finally, we ranked the stocks in ascending order based on the stock’s Beta rating.
At Insider Monkey, we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Navitas Semiconductor Corporation (NASDAQ:NVTS)
Current Share Price as of February 19: $3.33
Stock Beta Rating: 2.21
Number of Hedge Fund Holders: 8
Navitas Semiconductor Corporation (NASDAQ:NVTS) designs, develops, and markets gallium nitride power integrated circuits, silicon carbide and associated high-speed silicon system controllers. The company specializes in cutting-edge semiconductor solutions that play a major role in determining the future direction of power management and energy efficiency. Its products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, and smart grid.
The demand for electric vehicles and renewable energy systems is expected to drive the semiconductor market’s growth to $1 trillion by 2030, making investments in companies like Navitas essential to advancement. With more than 200 client projects and a number of design wins, Navitas Semiconductor Corporation (NASDAQ:NVTS) is expanding its presence in the A.I. data center and electric vehicle industries.
Navitas Semiconductor Corporation (NASDAQ:NVTS) has started a cost-cutting initiative to strengthen its financial position. This plan, which is anticipated to save the company $2 million every quarter, will concentrate on high-growth industries like mobile applications, electric vehicles, and AI data centres while streamlining the organization.
Overall NVTS ranks 8th on our list of the best get rich quick stocks to invest in. While we acknowledge the potential of NVTS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVTS 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
