In this article, we will list the 5 Oversold Growth Stocks to Invest In Now. Please visit 10 Oversold Growth Stocks to Invest In Now if you would like to see the extended list and the methodology behind it.
5. PDF Solutions, Inc. (NASDAQ:PDFS)
Number of Hedge Fund Holders: 15
PDF Solutions, Inc. (NASDAQ:PDFS) is one of the best oversold growth stocks to invest in now. Northland lifted the price target on PDF Solutions, Inc. (NASDAQ:PDFS) to $50 from $33 on May 8, reiterating an Outperform rating on the shares following “a strong quarter” and maintaining a full-year revenue guidance of up 20%.
The rating update came after PDF Solutions, Inc. (NASDAQ:PDFS) announced financial results for fiscal Q1 2026 on May 7, reporting quarterly total revenues of $60.1 million, up 26% over last year’s comparable quarter. It further reported GAAP gross margin of 72% and non-GAAP gross margin of 76%, with GAAP operating margin of 10% and non-GAAP operating margin of 25%.
Management also stated that GAAP net income for the quarter was $4.8 million, or $0.12 per diluted share, compared to net loss of $48 thousand, or $(0.00) per diluted share, for fiscal Q4 of 2025, and net loss of $3.0 million, or $(0.08) per diluted share, for fiscal Q1 2025.
PDF Solutions, Inc. (NASDAQ:PDFS) provides an end-to-end analytics platform empowering engineers and data scientists across the semiconductor ecosystem and data analytics for yield enhancement and process-design optimization. Its products, platforms, and services include proprietary software, electrical measurement hardware tools, physical intellectual property for integrated circuit designs, proven methodologies, and professional services.
4. Eton Pharmaceuticals, Inc. (NASDAQ:ETON)
Number of Hedge Fund Holders: 18
Eton Pharmaceuticals, Inc. (NASDAQ:ETON) is one of the best oversold growth stocks to invest in now. H.C. Wainwright lifted the price target on Eton Pharmaceuticals, Inc. (NASDAQ:ETON) to $57 from $52 on May 15, reaffirming a Buy rating on the shares and citing the company’s elevated fiscal 2026 revenue guidance and confidence in its growth strategy for the target bump. The firm further told investors in a research note that the company’s stated long-term goals could be achievable, given its execution to date.
The rating update came after Eton Pharmaceuticals, Inc. (NASDAQ:ETON) reported its fiscal Q1 2026 results on May 14, reporting product sales of $24.3 million for the quarter, reflecting a 73% growth over Q1 2025. It also raised its full-year revenue guidance, and now anticipates 2026 revenue to surpass $120 million, up from previous guidance of $110 million. The company further reported that fiscal Q1 2026 fully diluted GAAP EPS was $0.05, non-GAAP fully diluted EPS was $0.14, and adjusted EBITDA reached $5.7 million. Eton Pharmaceuticals, Inc. (NASDAQ:ETON) also received FDA approval for and launched DESMODA™, while also acquiring and relaunching HEMANGEOL®.
Eton Pharmaceuticals, Inc. (NASDAQ:ETON) is a pharmaceutical company that develops and sells treatments for rare diseases. The company focuses on bringing therapies to patients with limited treatment options.
3. Cerus Corporation (NASDAQ:CERS)
Number of Hedge Fund Holders: 21
Cerus Corporation (NASDAQ:CERS) is one of the best oversold growth stocks to invest in now. BTIG upgraded Cerus Corporation (NASDAQ:CERS) to Buy from Neutral on May 1, reiterating a $4 price target. The rating update came after the company announced its financial results for fiscal Q1 2026, with total revenue for the quarter reaching $59.9 million, up 23% compared to the prior year period. Product revenue for fiscal Q1 2026 reached $53.7 million, reflecting a 24% growth over the prior year period.
Cerus Corporation (NASDAQ:CERS) raised its full-year product revenue guidance range to $227 million – $231 million, reflecting 10% to 12% year-over-year increase. Management attributed the strong start to 2026 to strength across the company’s business, in particular due to rising demand for its INTERCEPT Fibrinogen Complex. Cerus Corporation (NASDAQ:CERS) also announced a meaningful catalyst path in 2026, spanning anticipated regulatory, clinical, and pipeline milestones, which includes ongoing INTERCEPT RBC regulatory review in Europe, the Phase 3 RedeS readout in the U.S., and the planned U.S. PMA submission for its new INT200 illumination device.
Cerus Corporation (NASDAQ:CERS) is involved in the research, development, and manufacturing of biomedical and surgical products. The company produces blood systems for platelets and plasma, operates through the Blood Safety segment, and markets products under the INTERCEPT brand.
2. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 101
ASML Holding N.V. (NASDAQ:ASML) is one of the best oversold growth stocks to invest in now. ASML Holding N.V. (NASDAQ:ASML) announced on May 16 the signing of a Memorandum of Understanding (MoU) with Tata Electronics for the advancement of the semiconductor manufacturing ecosystem in India. Tata Electronics is a leading name in India’s electronics and semiconductor manufacturing sector. The company reported that the partnership would allow ASML Holding N.V. (NASDAQ:ASML) to enable the establishment and successful ramp of Tata Electronics’ upcoming 300 mm (12 inch) semiconductor fab in Dholera, Gujarat. The collaboration marks a significant step in the intensifying strategic collaboration between India and the Netherlands in the field of critical technologies, such as semiconductor technology.
The company further reported that the collaboration would focus on the deployment of ASML Holding N.V.’s (NASDAQ:ASML) holistic suite of advanced lithography tools and solutions for the Dholera fab.
Separately, in its financial results for fiscal Q1 2026, ASML Holding N.V. (NASDAQ:ASML) reported total net sales of €8.8 billion, gross margin of 53.0%, and net income of €2.8 billion. The company anticipates Q2 2026 total net sales to be between €8.4 billion and €9.0 billion, and a gross margin between 51% and 52%.
ASML Holding N.V. (NASDAQ:ASML) is involved in the development, production, marketing, sales, upgrading, and servicing of advanced semiconductor equipment systems. It includes lithography, metrology, and inspection systems.
1. Lam Research Corporation (NASDAQ:LRCX)
Number of Hedge Fund Holders: 104
Lam Research Corporation (NASDAQ:LRCX) is one of the best oversold growth stocks to invest in now. Morgan Stanley upgraded Lam Research Corporation (NASDAQ:LRCX) to Overweight from Equal Weight on May 18, adjusting the price target on the stock to $331 from $293. The firm told investors in a research note that the magnitude of Morgan Stanley’s DRAM wafer fab equipment revisions has narrowed, and the firm is now more positive on NAND wafer fab equipment revisions from here. It also cited confidence in the company’s 2027 share gains for the upgrade. The firm coupled the upgrade with a downgrade of Applied Materials (AMAT).
In a separate development, RBC Capital lifted the price target on Lam Research Corporation (NASDAQ:LRCX) to $310 from $290 on April 23, maintaining an Outperform rating on the shares and telling investors in a research note that the company delivered a solid beat and raise. This was driven primarily by market share gains and GenAI demand, while DRAM memory was particularly strong in the quarter, and the NAND outlook is also improving.
Lam Research Corporation (NASDAQ:LRCX) designs, manufactures, markets, refurbishes, and provides semiconductor processing equipment used in the fabrication of integrated circuits. The company’s operations are divided into the following geographical segments: the United States, China, Europe, Japan, Korea, Southeast Asia, and Taiwan.
While we acknowledge the potential of LRCX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LRCX and that has 100x upside potential, check out our report about the cheapest AI stock.
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