Lantronix, Inc. (NASDAQ:LTRX) is among the best AI stocks to buy under $25. The stock has climbed more than 20% over the past six months and soared over 190% over the past 12 months.
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On March 24, 2026, Lantronix, Inc. (NASDAQ:LTRX) presented at the 38th Annual Roth Conference, highlighting its shift from hardware manufacturing to AI‑driven systems and edge intelligence. The company is positioning itself as a leader in “Physical AI,” with strong momentum in drones, robotics, aerospace, defense, and critical infrastructure. Partnerships with FLIR and MediaTek are central to expanding AI capabilities in imaging, robotics, and autonomous systems, while recurring revenue (ARR) is targeted to reach 10–12% of total revenue within two years.
Financially, Lantronix maintains a solid balance sheet and consistent non‑GAAP EPS, with drone revenue projected at $8–$12 million in FY26 and expected to double by FY27. The company is also pursuing M&A opportunities to strengthen AI offerings in drones and infrastructure, while federal contracts and collaborations with Vodafone and major MNOs support growth in defense and critical monitoring. Looking ahead, Lantronix aims to scale AI‑enabled camera intelligence, edge analytics, and autonomous solutions, positioning itself for long‑term growth in both defense and commercial markets.
Lantronix, Inc. (NASDAQ:LTRX) is among the companies that stand to benefit from the Pentagon’s drone dominance program. The Pentagon is out to acquire more than 300,000 small low-cost drones for warfare over the next two years, and it’s ready to spend more than $1 billion on the drone program. Even a small drone uses a variety of components.
What’s notable is that the Pentagon is emphasizing the domestic supply chain and AI-enabled capabilities for this drone program. With eyes on the Pentagon’s drone program and other opportunities, Lantronix on March 19 announced a partnership with Unusual Machines to develop drone components for US defense programs.
Unusual Machines is a specialist in drone components, while Lantronix is an expert in edge AI and industrial IoT solutions. The companies have decided to bring their capabilities together to build components for AI-enabled autonomous drones suitable for defense application.
Based in California, Lantronix, Inc. (NASDAQ:LTRX) is a global provider of IoT and Edge AI solutions. It offers hardware, software, and services that enable businesses to manage and secure their connected devices. Lantronix serves public service, industrial, and enterprise customers.
While we acknowledge the risk and potential of LTRX 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 LTRX and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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