indie Semiconductor, Inc. (INDI) Closing in on Profitability amid Backlog Growth

indie Semiconductor, Inc. (NASDAQ:INDI) is a must-buy penny stock to buy now. On November 10, UBS resumed coverage of indie Semiconductor, Inc. (NASDAQ:INDI) with a Neutral rating and raised its price target to $5 from $4.50, noting supply-driven earnings shortfalls and cautious December guidance, while highlighting stable ADAS trends but limited upside until a potential earnings inflection in late 2026. Benchmark Co reiterated a Buy rating on the stock on November 7 and set an $8 price target, following better-than-expected third-quarter results.

indie Semiconductor, Inc. (INDI) Closing in on Profitability amid Backlog Growth

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On November 6, the company delivered strong third-quarter results characterized by a strategic backlog increasing to $7.4 billion. The better-than-expected results underscore the strength of design-win momentum across ADAS and growth in industrial markets, including quantum and robotics.

The company posted $53.7 million in revenue with a non-GAAP gross margin of 49.6%. On the other hand, the company’s operating loss narrowed to $11.3 million compared to $16.8 million in the same quarter last year. With the backlog increasing to $7.4 billion, the company remains on track to become profitable.

During the quarter, Indie Semiconductor successfully designed a Robotaxi for a North American self-driving OEM. It also launched DFB laser products with 10X lower frequency noise for quantum computing applications.

indie Semiconductor, Inc. (NASDAQ:INDI) designs and sells automotive-grade semiconductors and software solutions for driver assistance systems, in-cabin user experience, and vehicle electrification. The company focuses on edge sensors, including LiDAR, radar, ultrasound, and computer vision, and its products are utilized in various automotive applications.

While we acknowledge the potential of indie Semiconductor, Inc. (NASDAQ:INDI) as an investment, 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 the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.