Microvast Holdings, Inc. (NASDAQ:MVST) is one of the best electric vehicle supply chain stocks to buy right now. Microvast Holdings, Inc. (NASDAQ:MVST) reported Q2 of Fiscal Year 2025 on August 11. The lithium-ion battery maker posted EPS of $0.05 per share compared to the Wall Street expectations of $0.01 per share. The company reported record revenue of $91.3 million, a modest 9.2% increase year-over-year. The company also expanded its gross margins to 34.7%, from 36.9% in the previous quarter and 32.5% in the same quarter last year.
Adjusted net profit came in at $16.3 million, and adjusted EBITDA reached $25.9 million, a major comeback from losses in the previous year. Operating expenses dropped heavily due to cost controls and lower share-based compensation, the company said.
Microvast Holdings, Inc. (NASDAQ:MVST) is also making a big push in battery innovation, especially with its solid-state battery technology, which charges faster, is safer, has a longer lifespan, and is smaller and lighter compared to regular batteries.
The company continues to expand globally, with revenue growth in the U.S., EMEA, and APAC regions. It is also adding new production capacity in China to meet rising demand. The company expects its Phase 3.2 expansion in Huzhou, China, to start initial production later this year. This would boost annual battery production capacity by about 2 GWh.
Meanwhile, the company reported a positive cash flow of $44.3 million and has a cash balance of $138.8 million. The management noted that the company is focused on innovation, efficiency, and long-term profitability. The company is targeting 18%-25% year-over-year growth, which corresponds to a full-year revenue range of $450 million to $475 million.
The stock is trading at a forward P/E of 13.32x, which is cheap given its growth projections. The company’s revenue is expected to grow at nearly 27.32% on an average compounded rate annually over the next 3 years, according to Wall Street analysts. The average 12-month Wall Street upside for the stock currently stands at a staggering 113.59%, although only 2 analysts track it.
While we acknowledge the potential of MVST 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 MVST and that has 100x upside potential, check out our report about this cheapest AI stock.
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