Billionaire Jim Simons’ RenTech’s 10 Small-Cap Stock Picks with Huge Upside Potential

5. Nova Ltd. (NASDAQ:NVMI)

Renaissance Technologies’ Stake Value: $147,867,303

Upside Potential as of May 1: 48.40%

Market Capitalization as of May 1: $5.838 Billion

Number of Hedge Fund Holders: 26

Nova Ltd. (NASDAQ:NVMI) develops and sells advanced measurement tools (known as metrology solutions) for the semiconductor and electronics industries. These tools help manufacturers check the size and quality of very small, high-tech components during production.

Nova Ltd. (NASDAQ:NVMI) reported record financial performance in Q4 and full year 2024. Revenue for the quarter climbed 9% quarter-over-quarter to $194.8 million. This growth was a remarkable 45% jump year-over-year and exceeded company guidance. For the full year, the firm posted record annual revenue of $672.4 million, a 30% increase compared to 2023. Profitability also grew substantially; non-GAAP net income for the quarter touched $62.3 million ($1.94 per diluted share), up 43% year-over-year. Full-year non-GAAP net income reached $214.9 million ($6.69 per diluted share), a 38% increase from 2023.

According to management, the strong performance was possible because of multiple growth vectors. For starters, sales of materials metrology solutions like the Nova Metrion and Nova Veraflex platforms hit new records. Also, the company posted record sales for dimensional metrology stand-alone solutions for advanced packaging and Gate-All-Around (GAA) manufacturing. Analysts hold a Strong Buy opinion on Nova Ltd. (NASDAQ:NVMI) and their 1-year median price target points to a 48.40% upside from current levels, as of May 1.