Lake Street Identifies Lantronix (LTRX) as a Hidden Gem Driven by Drone Industry Traction, Tier-1 Wireless Demand

Lantronix Inc. (NASDAQ:LTRX) is one of the hot tech stocks to invest in. Earlier on December 11, Lake Street raised the firm’s price target on Lantronix to $8 from $6 with a Buy rating on the shares. The firm believes that Lantronix is gaining traction as a hidden gem within the drone industry. This growth, combined with steady demand from a Tier-1 wireless provider for cell site monitoring and strength in the out-of-band management market, is expected to fuel revenue growth through next year.

On the same day, Lantronix Inc. (NASDAQ:LTRX) announced a collaboration with Trillium Engineering to integrate its Edge AI technology into gimbaled imaging systems for Uncrewed Aircraft Systems/UAS. Lantronix will provide NDAA/TAA-compliant solutions and engineering services to power Trillium’s military and commercial drone platforms.

Lake Street Identifies Lantronix (LTRX) as a Hidden Gem Driven by Drone Industry Traction, Tier-1 Wireless Demand

The collaboration centers on the use of Lantronix’s Open-Q 5165RB System on Module/SOM, which is powered by Qualcomm Dragonwing processors. This hardware enables Trillium’s GD-Loc and NyxCore products to perform advanced on-device AI functions, including real-time edge processing for actionable insights and AI-driven object detection and tracking. The technology is specifically designed for Size, Weight, and Power/SWaP optimization, ensuring high performance in compact uncrewed platforms while maintaining precision targeting and low latency, even in environments where GPS or networks are restricted.

Lantronix Inc. (NASDAQ:LTRX) develops, markets, and sells industrial and enterprise IoT products and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific Japan.

While we acknowledge the potential of LTRX to grow, 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 LTRX and that has 100x upside potential, check out our report about this cheapest AI stock.

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