Jacob Funds, a mutual fund company, released its first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The Fund started the year optimistically, expecting fiscal and monetary policies to boost an economy showing mixed signals. However, rapid AI developments and a Middle East conflict caused one of the worst quarters since COVID. Market turbulence led to widespread tech sell-offs, blurring lines between at-risk and AI-benefiting firms. AI prompts critical long-term questions for the tech industry, with emerging agentic AI promising a new wave of innovation similar to the late 1990s dot-com boom. Recent market weakness allowed the Fund to invest in promising beneficiaries at better prices, creating an opportunity to pivot into names with potential for rapid growth and profits as agentic AI moves from niche to broad adoption. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, Jacob Funds highlighted Energous Corporation (NASDAQ:WATT) as a new addition to the Jacob Discovery Fund. Energous Corporation (NASDAQ:WATT) is a technology company that provides wireless charging system solutions, known for its over-the-air Wireless Power Network (WPN) technology. On April 9, 2026, Energous Corporation (NASDAQ:WATT) closed at $18.97 per share. One-month return of Energous Corporation (NASDAQ:WATT) was 55.75%, and its shares gained 122.65% over the past 52 weeks. Energous Corporation (NASDAQ:WATT) has a market capitalization of $104.36 million.
Jacob Funds stated the following regarding Energous Corporation (NASDAQ:WATT) in its Q1 2026 investor letter:
“The Jacob Discovery Fund added one new position in the quarter, Energous Corporation (NASDAQ:WATT). Energous is a name we have tracked for a long time, as we were intrigued by its consumer-focused wireless power technology. Unfortunately, the company was never able to overcome numerous technical and operational challenges and was very close to going bankrupt. However, the company made a smart pivot to utilize its wireless technology capabilities in the enterprise space. Its PowerBridge Pro transmitters help its clients keep track of the vast array of ambient wireless devices, tags and sensors that are now key data-gathering elements of most modern enterprises’ networks. The company has secured one large retail client to help serve as a major reference customer and prove its capabilities and expertise. That client has meant big revenue growth and narrowing losses over the past 12 months, and hopefully a robust pipeline of opportunities will lead to more substantial clients and a breakeven business soon.”
Energous Corporation (NASDAQ:WATT) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. While we acknowledge the risk and potential of Energous Corporation (NASDAQ:WATT) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Energous Corporation (NASDAQ:WATT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Energous Corporation (NASDAQ:WATT) and shared Kingdom Capital Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
