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Missed NVIDIA? Check Out This Semiconductor AI Penny Stock

We recently compiled a list of the 11 Best AI Penny Stocks to Invest in Now and in this article we will give you an AI penny stock that can be worthy of exploring in case you missed buying NVIDIA Corporation (NASDAQ:NVDA) when it was trading under $500 per share at the beginning of the year.

It’s no secret that semiconductors are among the best pick-and-shovel plays for those looking to invest in the booming Artificial Intelligence sector. NVIDIA Corporation (NASDAQ:NVDA) saw its stock surge by more than 150% over the past year. This growth can almost solely be attributed to increased demand for its Graphic Processing Units (GPUs), which are perfect for processing large amounts of data required in various AI and machine learning applications.

Amid this strong performance, NVIDIA Corporation (NASDAQ:NVDA) was included in the so-called “Magnificent Seven”, a group of the largest publicly-traded companies. However, as the AI boom continues, NVIDIA Corporation (NASDAQ:NVDA) is expected to continue to deliver solid returns to investors. The stock currently saw its price target upped by Goldman Sachs. Analyst Toshiya Hari raised the price target to $1100 from $1000 and reiterated the ‘Buy’ rating. In the research note, the analyst mentioned that the sustainable nature of NVIDIA Corporation (NASDAQ:NVDA)’s growth suggests that the stock is trading at an attractive valuation.

The strong fundamentals suggest that NVIDIA Corporation (NASDAQ:NVDA) is a good pick for risk-averse investors looking for solid long-term returns. Therefore, it’s not surprising that the stock is one of the most popular among hedge funds tracked by Insider Monkey. According to the latest round of 13F filings, 186 out of 920 hedge funds tracked by Insider Monkey were bullish on NVIDIA at the end of March. We are following this metric because 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).

Enter Navitas Semiconductor

However, for risk-tolerant investors, we can suggest looking at Navitas Semiconductor Corp (NASDAQ:NVTS). Similarly to NVIDIA, Navitas is a semiconductor stock, but it is currently trading at less than $4 per share, which makes it one of the best AI penny stocks to buy now. It may not reach the size of NVIDIA Corporation, but it’s worth remembering that in 2014, NVIDIA was trading at less than $5 per share.

Navitas Semiconductor Corp (NASDAQ:NVTS) is a small-cap company that is focused on power semiconductors, such as gallium nitride power integrated circuits and silicon carbide power devices. Basically, it is developing semiconductors that are used in power supply for various devices. In this way, Navitas’ products have a wide range of applications, including mobile phones, laptops, and consumer electronics. Moreover, Navitas supplies semiconductors to some high-growth industries, such as Data Centers, electric vehicles, and solar inverters. Among the company’s clients are Dell, Lenovo, Xiaomi, Amazon, OPPO, and Motorola. Most of the company’s products that are currently being shipped are used in mobile device chargers.

A technician in a pristine lab, focused on designing a new semiconductor chip.

On a financial side, things look good for Navitas. The company has seen strong revenue growth over the past several quarters. In the first quarter of 2023, Navitas Semiconductor Corp (NASDAQ:NVTS) saw its revenue grow by 73% to $23.2 million. The company has been seeing robust top-line growth over the past several quarters. However, the costs are also quite high and Navitas has yet to report a profitable quarter. For the first quarter, Navitas posted a net loss of $0.02 per share, significantly lower than the $0.39 loss posted a year earlier. Both first-quarter revenue and net loss were above analysts’ expectations of $22.92 million and a loss of $0.15 per share, respectively.

Navitas As a Pick-and-Shovels AI Play

Despite the revenue growth and the further revenue growth potential, Navitas Semiconductors Corp (NASDAQ:NVTS) has seen its stock lose 48% since the beginning of the year. In an environment where most semiconductor stocks recorded gains, this doesn’t look good. One of the reasons for the decline, was explained by the company’s CEO Gene Sheridan on CNBC.

“We’re not shipping to AI today, so our stock price reflects that,” Sheridan said.

However, the CEO added that Navitas plans to change that soon. The company plans to develop and market power chip technology that could be used to power AI-focused data centers. The company is developing power platforms that could provide higher power output to meet the demand required by AI processors, such as NVIDIA’s Grace Hopper H100 and recently announced Blackwell chips. These chips demand between 700W to 1,000W and more power, which is significantly higher than 300W demanded by traditional CPUs. Navitas said it has around 30 customer projects in development and expects its power chips to be used in data centers at Amazon.com, Inc. (NASDAQ:AMZN)’s AWS, Microsoft Corporation (NASDAQ:MSFT)’s Azure, Alphabet Inc (NASDAQ:GOOGL)’s Google, and Baidu Inc (NASDAQ:BIDU).

Check out our report about the cheapest AI stock and find out which company is as promising as Microsoft but that trades at less than five times its earnings.

What Smart Money and Sell-Side Think About Navitas

As stated earlier, we believe that Navitas Semiconductors Corp (NASDAQ:NVTS) is one of the best AI penny stocks to buy now based on the hedge fund sentiment. At the end of March, there were 11 funds in our database bullish on the stock, down from 18 a quarter earlier. At the end of March, these funds held $80 million worth of shares.

Analysts also generally see potential upside in Navitas Semiconductors Corp (NASDAQ:NVTS). In May, following the earnings release, four analysts reiterated their buy ratings on the stock, although they did lower their price targets. Among these, the highest price target is currently assigned by Rosenblatt Securities, which has a $10 target. Other three analysts, at Robert W. Baird, Needham & Company LLC, and Deutsche Bank have a $7.00 price target. On the other hand, analysts at Jefferies, downgraded the stock to Hold from Buy and slashed the price target down to $4.00.

In conclusion, Navitas Semiconductors Corp (NASDAQ:NVTS) is a penny stock worth exploring. The company is advancing its developments to get more exposure to the AI sector, albeit it is late to the party. On the other hand, it has a broad pipeline of applications across various sectors and can unlock more growth in other areas. For example, in automotive, Navitas Semiconductors Corp (NASDAQ:NVTS) plans to start production of chips for EV chargers and has several big names among its customers, including Volvo, Smart, and Zeekr Intelligent Technology Holding Ltd (NYSE:ZK).

If you want to explore other AI stocks under $5 that smart money is bullish on, check out our free report on the 11 Best AI Penny Stocks to Invest in Now.

If you are looking for an AI stock that is more promising than Micron but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

Read Next: Michael Burry Is Selling These Stocks and Jim Cramer is Recommending These Stocks.

Disclosure: None. This article is originally published at Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…