Enovix stock rocketed Thursday as the startup company prepares to ramp production of its advanced batteries for smartphone customers. ENVX stock soared more than 45% following its quarterly update.
The Fremont, Calif.-based company late Wednesday reported first-quarter revenue of $5.3 million, topping views for $4.1 million. It lost an adjusted 31 cents a share, in line with views.
But investors in the venture were more interested in the company's production milestones and new customers.
Enovix announced a development agreement with one of the top five smartphone manufacturers in the world by unit volume. It did not name the customer.
The agreement underscores "the value and competitive advantage our silicon batteries can provide to the next generation of smartphones," Chief Executive Raj Talluri said in a news release.
ENVX Stock Jumps After Report
On the stock market today, ENVX stock surged 45.5% to close at 9.47. Enovix went public in January 2021.
Enovix has begun manufacturing its EX-1M battery cells based on smartphone customer specifications and is on track to deliver first samples in the second quarter. High-volume production will take place at the company's Fab2 facility in Penang, Malaysia.
In a client note, Loop Capital analyst Ananda Baruah said Enovix has done a good job laying out the next 36 months in its revenue ramp.
Two leading smartphone vendors are positioning to be first to market with Enovix batteries in 2025, Baruah said.
Six of the top eight smartphone manufacturers are in line to receive samples when Enovix begins shipping in the June quarter, he said.
Baruah rates ENVX stock as buy with a price target of 100.
Underappreciated Play On AI
Elsewhere on Wall Street, Oppenheimer analyst Colin Rusch called Enovix an underappreciated play on artificial intelligence on mobile devices. To run generative AI applications, smartphones will need higher capacity batteries, such as those being made by Enovix, he said in a client note.
"We believe Enovix is uniquely positioned to support accelerating edge device power needs," Rusch said.
He rates ENVX stock as outperform with a price target of 36.
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