Is Identiv, Inc. (INVE) the Best Cybersecurity Stock to Invest in Under $20?

We recently published a list of 10 Best Cybersecurity Stocks to Invest in Under $20. In this article, we are going to take a look at where Identiv, Inc. (NASDAQ:INVE) stands against other best cybersecurity stocks to invest in under $20.

The cybersecurity sector is at a tipping point, driven by growing cyber threats, breakthrough technologies such as AI and IoT, and a renewed focus on national security and digital infrastructure. Despite a well-documented talent scarcity and evolving geopolitical concerns, the industry continues to grow rapidly, creating an ideal environment for innovation and investment.

According to Fortune Business Insights, the worldwide cybersecurity industry was valued at $172.24 billion in 2023 and is expected to reach $562.72 billion by 2032, expanding at a CAGR of 14.3%. North America, notably the United States, dominates this environment, driven by the growth of e-commerce platforms, increased digital adoption in industries such as BFSI and healthcare, and greater consumer awareness. Cloud computing, AI, machine learning, and IoT technologies are now at the forefront of current cybersecurity solutions, allowing enterprises to identify and prevent digital breaches in real time.

However, as technology advances, so do the hazards. McKinsey’s November 2024 report underlines the critical need to make AI systems more secure, advising cybersecurity providers to focus on the dual problem of protecting both their own AI models and those used by their clients. Generative AI and third-party integrations provide new attack surfaces, necessitating the use of smarter, more adaptive protection technologies.

The need is further heightened by significant policy developments. According to WIRED, former President Trump slapped punitive tariffs on technology imports, sending shockwaves across the semiconductor and e-commerce sectors. While some tech businesses may profit from increased demand for logistics and supply chain management technologies, others, such as major tech giants, saw their stock prices fall sharply due to concerns about inflation and disrupted trade routes. Tariffs on goods from China and other significant nations may boost consumer prices and limit the supply of critical cybersecurity components, particularly for cloud and data center operators.

In the meantime, firms’ stakes are still rising. Nearly half of American businesses have experienced significant revenue losses as a result of data breaches, according to Arcserve and IBM. In 2024, the average cost of a breach was close to $4.9 million; when events took more than 200 days to identify, the cost increased to $5.5 million. The threat surface is growing due to generative AI, and just 40% of SaaS services are actively monitored for security, further taxing already overworked security teams.

According to Forbes, there is a paradox in the workforce, despite a 4.8 million cybersecurity expert deficit worldwide, thousands of competent IT workers are still underutilized as a result of strict recruiting practices and a lack of investment in local talent development. While degrees and certifications are still important, practical experience gained through laboratories, bug bounty programs, or internships has emerged as the key differentiator.

When combined, these patterns point to a fundamental transformation of the cybersecurity sector as well as an increase in demand for cybersecurity services. Cybersecurity firms that can innovate at scale while navigating governmental changes and global uncertainties are being keenly watched by investors, particularly those keeping an eye on high-growth tech industries.

Methodology

In order to find the Best Cybersecurity Stocks to invest in under $20, we started by searching for companies working in the cybersecurity sector using the Finviz stock screener, applying a price filter to include just those trading below $20 per share. Following the compilation of the list, we used Insider Monkey’s hedge fund holdings database to analyze hedge fund sentiment for each stock. Next, we arranged the stocks according to the number of hedge funds that owned each one in ascending order, as per Insider Monkey’s database of Q4 2024. The final list consists of cybersecurity stocks under $20 that are currently overlooked by institutional investors, perhaps representing discounted chances in a quickly changing field.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Is Identiv, Inc. (INVE) the Best Cybersecurity Stock to Invest in Under $20?

A close-up of a computer monitor showing a dynamic network of cyber security components.

Identiv, Inc. (NASDAQ:INVE)

Share Price: $3.25

Number of Hedge Fund Holders: 12

Leading developer of specialized IoT and RFID solutions, Identiv, Inc. (NASDAQ:INVE) serves a variety of industries, including consumer products, healthcare, and pharmaceuticals. Identiv, which has its headquarters in Santa Ana, California, specializes in gadgets that integrate or affix to tangible objects to provide distinct digital identities for improved user experiences, real-time tracking, and verification. Since its founding in 1990, the company has progressively established a solid reputation for safely bridging the digital and physical worlds.

Identiv, Inc. (NASDAQ:INVE) had a revolutionary year in 2024, turning into a pure-play IoT company with an exclusive RFID focus. Revenue for the fourth quarter was $6.7 million, above forecast, and for the full year it was $26.6 million. Identiv made great progress by moving 75% of manufacturing to a new, low-cost plant in Thailand, aiming for a long-term gross margin of 35%, despite revenue challenges from the production change. Future growth is anticipated to be driven by new product developments, such as BLE-enabled healthcare and smart packaging devices.

On February 27, 2025, Identiv, Inc. (NASDAQ:INVE) also revealed a significant strategic alliance with Novanta Inc. to expedite the use of RFID in medical equipment. Identiv’s RFID inlays and Novanta’s ThingMagic readers will be combined to provide end-to-end solutions that will enhance patient safety and spur product development. “Facilitate the adoption of RFID technology in critical medical device applications” is what CEO Kirsten Newquist highlighted as the outcome of this collaboration.

Furthermore, Identiv, Inc. (NASDAQ:INVE) is well-positioned for margin expansion and operational leverage thanks to its Perform, Accelerate, Transform (PAT) strategy, which focuses on growing in high-value healthcare and logistics verticals. The company’s transition period appears to be almost finished, and the foundation for scalable, profitable development in 2025 is solidly established thanks to significant macro tailwinds in cybersecurity and IoT digitization.

Overall, INVE ranks 7th on our list of best cybersecurity stocks to invest in under $20. While we acknowledge the potential of INVE, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than INVE but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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