7 Small-Cap Semiconductor Stocks to Buy According to Analysts

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1. indie Semiconductor, Inc. (NASDAQ:INDI)

On February 23, UBS cut the price target on indie Semiconductor, Inc. (NASDAQ:INDI) to $4.25 from $5 and maintained a Neutral rating. Additionally, the firm trimmed its EPS projections from $0.28 to $0.27, while raising its estimates for 2028 and beyond.

UBS anticipates indie Semiconductor, Inc. (NASDAQ:INDI) to deliver sequential growth due to its Tier 1 77GHz radar ramp. With revenue expectations of nearly $80 million at year-end, or approximately $55 million excluding Wuxi, the firm projects revenue will grow from $124 million excluding Wuxi to more than $620 million in 2028. From radar to modest contributions from Quantum robotics and eMotion3D, the firm listed many catalysts behind this outlook.

Moreover, UBS estimates gross margin to progress to about 53% at year-end. This will particularly be driven by the acceleration of advanced driver assistance systems. The firm expects indie Semiconductor, Inc. (NASDAQ:INDI) to report a small EPS loss in Q3 before it turns positive in the subsequent quarter.

indie Semiconductor, Inc. (NASDAQ:INDI) is a California-based provider of automotive semiconductors and software solutions. Founded in 2007, the company offers advanced driver assistance systems, autonomous vehicles, and electrification applications, among others.

While we acknowledge the potential of INDI 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 INDI and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.

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