indie Semiconductor (INDI) Sold Off in Q1 Due to Tariff Uncertainty

Frontier Capital Management, an investment management company, released its “Frontier Small Cap Growth Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. Class N shares of the fund returned -14.43% in the first quarter, compared to -11.12% for the benchmark Russell 2000 Growth Index. The fund returned -14.50% for the 12 months ended March 31, 2025, compared to the benchmark return of -4.86%. US equities traded lower in the first quarter, mainly during the last week of the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its first quarter 2025 investor letter, Frontier Small Cap Growth Fund highlighted stocks such as Indie Semiconductor, Inc. (NASDAQ:INDI). Indie Semiconductor, Inc. (NASDAQ:INDI) designs and develops various semiconductor and infrastructure software solutions. The one-month return of Indie Semiconductor, Inc. (NASDAQ:INDI) was 30.31%, and its shares lost 40.54% of their value over the last 52 weeks. On July 3, 2025, Indie Semiconductor, Inc. (NASDAQ:INDI) stock closed at $3.74 per share, with a market capitalization of $728.896 million.

Frontier Small Cap Growth Fund stated the following regarding Indie Semiconductor, Inc. (NASDAQ:INDI) in its first quarter 2025 investor letter:

“Our largest detracting industry was technology, with roughly half of the underperformance attributed to our overweight position and the other half from negative stock selection. Indie Semiconductor, Inc. (NASDAQ:INDI), a designer of semiconductors for both internal combustion engine powered cars and electric vehicles, was the worst performer. While the company guided first quarter revenue up year-over-year, the guidance was slightly below street estimates due to weakness in China. The stock continued to sell off as tariff uncertainty grew, calling into question auto build rates worldwide. indie has excellent growth prospects driven by its strong design-win momentum in many geographies. Additionally, given the company’s desirable portfolio of products, it remains a potential acquisition candidate if an industry slowdown persists.”

indie Semiconductor, Inc. (NASDAQ:INDI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Indie Semiconductor, Inc. (NASDAQ:INDI) at the end of the first quarter, compared to 22 in the previous quarter. In the first quarter, Indie Semiconductor, Inc. (NASDAQ:INDI) reported revenue of $54.1 million reflecting an increase of 3.3% from a year ago.  While we acknowledge the potential of Indie Semiconductor, Inc. (NASDAQ:INDI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Indie Semiconductor, Inc. (NASDAQ:INDI) and shared the list of best stocks to invest in for a quick return. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of INDI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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