Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 5 Aug, 25 | ENVX | Buy | USD 10.99 | USD 11.54 | USD 12.2 | 6 days | Closed |
5.00%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Enovix Corporation designs, develops, and manufactures lithium-ion batteries. It serves wearables and IoT, smartphone, laptops and tablets, industrial and medical, and electric vehicles industries. The company was founded in 2007 and is headquartered in Fremont, California.
Revenue Growth: Increased by USD 3.7 million or +98% YoY (from USD 3.8M to USD 7.5M)
Gross Margin Improvement: Non-GAAP gross margin improved from -15% to 31%, a turnaround of +46 percentage points
Continued Operating Loss: Non-GAAP operating loss remained substantial at USD 26.5 million, though slightly improved from USD 31.0 million YoY
Cash Decline: Cash, cash equivalents, and short-term investments decreased by USD 46.5 million (from USD 249.9M to USD 203.4M)
Enovix faces the risk that delays in customer qualification, production ramp-up, or adoption of the AI-1 platform—combined with ongoing operating losses—could materially impact its ability to achieve profitability before cash reserves are depleted
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 10.99 | 9.5 | 11.54 | 12.2 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strategic Product Launch and Market Expansion: In the second quarter of fiscal year 2025, Enovix Corporation achieved significant milestones, most notably the launch of its AI-1™ product platform. This core battery architecture leverages advanced materials, micron-level design rules, and fully automated manufacturing processes, enabling rapid adaptation into multiple product variants for diverse markets. Initial applications target smartphones, smart eyewear, AI processors, and industrial handheld devices. The company shipped production samples to leading OEMs and received encouraging feedback, with several customers progressing toward formal qualification.
Advancements in Manufacturing Readiness: Operational progress was evident as the Fab2 facility in Malaysia produced its first AI-1 batteries on high-volume manufacturing equipment. Customer qualification timelines were reduced by approximately 50%, and the company secured UN38.3 certification for its first AI-1 smartphone battery—a prerequisite for mass shipments. Enovix also began procuring long-lead components for a second high-volume manufacturing line in anticipation of growing demand.
Market Positioning in the AI Era: The company noted a structural shift in the consumer electronics sector, where AI-enabled devices are driving higher battery energy density requirements. With leadership in this domain, Enovix aims to address the growing mismatch between existing battery capabilities and next-generation device demands. Management highlighted the market trend toward larger-capacity batteries without increasing physical dimensions, positioning the AI-1 platform to capitalize on this evolution.
Integration of Strategic Acquisitions: The integration of recently acquired manufacturing assets in South Korea progressed ahead of schedule. The new coating equipment is expected to enhance battery performance, lower costs, and accelerate prototype development cycles from 20 weeks to just seven. The Korean facility’s production has already exceeded expectations, particularly in defense applications, and has expanded Enovix’s footprint in high-margin market segments.
Financial Performance: Enovix reported Q2 FY25 revenue of USD 7.5 million, surpassing guidance and marking a 98% increase year-over-year compared to USD 3.8 million in Q2 FY24. GAAP gross profit improved to USD 1.9 million, a significant turnaround from a USD 0.7 million loss in the prior-year quarter, while non-GAAP gross margin reached 31%. Adjusted EBITDA loss narrowed to USD 20.1 million from USD 25.9 million in the prior year. The GAAP net loss per share improved to USD 0.22 from USD 0.63, with cash, cash equivalents, and short-term investments totaling USD 203.4 million at quarter-end.
Capital Management Initiatives: During the quarter, Enovix issued a special shareholder warrant dividend, creating the potential to raise up to USD 255 million in additional capital. The Board also authorized a USD 60 million share repurchase program aimed at protecting shareholder value during periods of market volatility. No repurchases had been made as of July 30, 2025.
Outlook and Strategic Direction: Looking ahead to Q3 FY25, Enovix expects revenue between USD 7.5 million and USD 8.5 million, representing continued sequential and year-over-year growth. The company plans to advance commercialization efforts, expand customer qualification programs, and scale production capacity, positioning itself as a key supplier of high-performance batteries for AI-enabled devices and other demanding applications.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Enovix Corporation (NASDAQ: ENVX) at the closing market price of USD 10.99, as on August 04, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Industrials Industry: Electrical Equipment & Parts
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| ENVX Enovix Corp |
-0.3946 5.10% | 7.35 | - | - | 128.74 | 3.81 | 113.53 | -4.9226 |
| ABLZF ABB Ltd |
0.10 0.14% | 73.10 | 21.23 | 21.01 | 2.58 | 6.22 | 2.64 | 14.26 |
| ABBNY ABB Ltd |
-1.59 2.17% | 71.74 | 20.83 | 20.28 | 2.54 | 6.00 | 2.64 | 14.26 |
| MIELF Mitsubishi Electric Corporation |
- -% | 30.94 | 16.87 | 14.53 | 0.0059 | 1.21 | 0.0052 | 0.05 |
| MIELY Mitsubishi Electric Corp ADR |
-1.69 2.80% | 58.67 | 16.50 | 14.88 | 0.0058 | 1.23 | 0.0052 | 0.05 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is Aug 04,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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