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/NVEC
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NVE Corp

NVE Corp

NVEC
$100.51USD↑+2.96%+2.89 today

MARKET CAP

486.2M

P/E (TTM)

32.0x

FWD P/E

—

DAY RANGE

$99 – $102

52W RANGE

$57
$135

AI Summary

Stalk
TrimMedium

NVEC has decisively broken below key support in Stage 3 distribution, with moving averages now capping rallies and volume skewed to down days, indicating sustained selling pressure. The medium-term outlook is bearish, but price is extended below EMAs and prior support turned resistance, suggesting better sell entries on a pullback. Long-term trend remains up, anchoring potential for future recoveries, but execution requires patience until price rejects from the 50-day or reclaims area. We will defer aggressive selling until a failed reclaim of resistance confirms continued breakdown.

  • ↑Revenue up 81% to $11.03M in Q1 FY27; net income +79% to $6.39M.
  • ↑Gross margin expanded to 81.3% from 80.6%, boosting profitability.
  • ↓Customer concentration exposes revenue to few large accounts.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

NVE Corporation (NASDAQ: NVEC) is a leading developer and manufacturer of high-performance semiconductors focused on Spintronics technology, which enables advanced sensor solutions for markets such as medical devices and industrial automation. Operating within high-growth sectors including robotics and data centers, NVE's unique product offerings give it a significant edge in an increasingly competitive landscape.

Bull says

  • ↑Revenue up 81% to $11.03M in Q1 FY27; net income +79% to $6.39M.
  • ↑Gross margin expanded to 81.3% from 80.6%, boosting profitability.
  • ↑R&D investment at 14% of revenue fuels next-gen sensor launches.
  • ↑Quarterly dividend of $1/share, fully covered by earnings.
  • ↑Robotics and healthcare demand drives strong market opportunities.
  • ↑Positive momentum factors and high liquidity support stock appeal.

Bear says

  • ↓Customer concentration exposes revenue to few large accounts.
  • ↓High share volatility and small-cap risk amplify price swings.
  • ↓Analysts lowering estimates amid weak growth outlook.
  • ↓Dividend sustainability questioned under volatile revenue trends.
  • ↓Tariffs and macro uncertainties may pressure margins.
  • ↓Weak earnings yield and profitability factors suggest valuation risk.

Earnings Call · Q2 2024 · Mgmt. Guidance

Updated 10-30-2025neutral

Transcript signals

Bull points

  • we have an optimistic outlook. Our end markets are improving, and we have growth markets in the industrial Internet of Things and electrification.
  • Gross profit increased 5% from the prior year, and gross margin percentage increased to 86% from 78% in the prior year quarter.
  • We're pleased to report strong earnings despite continuing challenges in the semiconductor industry.

Bear points

  • Total revenue for the quarter ended September 30, 2024 decreased 5% due to a 14% decrease in product sales, partially offset by a 3,950% increase in contract R&D revenue.
  • The decrease in product sales was primarily due to continued inventory gluts, particularly in the distributor channels, driven by weak chip demand and a slow recovery in global manufacturing.
  • Total expenses increased 55% for the second quarter of fiscal 2025 compared to the second quarter of fiscal 2024, mostly due to a 24% increase in research and development expense and a 31% increase in selling, general, and administrative expense.
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