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Nextracker Inc. (NASDAQ:NXT): Making Hay While the Sun Shines

A report by SwissBear on ValueInvestorsClub provides an investment thesis for Nextracker Inc. (NASDAQ:NXT), a stock that is undervalued based on a 10.3x P/E multiple using FY25 EPS. We will summarize the bullish stance of the author in this article. NXT shares were trading at $38.65 when the valuation was done by SwissBear, vs. the closing price of $39.50 on Jan 02.

Solar panels in an agricultural field, highlighting the company’s commitment to renewable energy.

Nextracker Inc., an energy solutions company, provides solar tracker and software solutions for utility-scale and distributed generation solar projects in the United States and internationally. The US accounts for 65% of the revenue with international operations in Brazil, India, Spain and Australia.

 NXT enjoys a leadership position in an oligopolistic market with a market share of 35-40% in the US. There are significant barriers to entry since financers prefer established players with a proven track record. NXT also has a 10% market share in EMEA, a market that grew by 48%. It is the third largest player in APAC, with a market share of 12% and is looking to foray into the Middle East with its first system already built in Saudi Arabia.

The recent acquisitions expand the product offering and make it a complete player. While its independent trackers have offered flexibility and cost-effectiveness, Oijo and South Pile International enable the firm to install trackers in terrains that contain bedrock or those with weak soil profiles. These features are critical for expansion since almost 25% of installations are located on bedrock and this figure is expected to increase with solar development being allowed in federal lands that are bedrock-heavy.

NXT has also diversified its supplier base in order to prevent disruption in production. Steel accounts for 80-90% of costs and the suppliers are located in close proximity, reducing transportation costs and delays. A robust supplier management has been a major reason why the gross margin has been high (28-30%). The management acknowledges a compression in 2025-26 due to competitive pricing, with the margins settling down to 22-23%.

For a firm offering tremendous growth potential in an oligopolistic market, the valuation is extremely cheap. The share is trading at 10.3x its FY25 EPS, offering a potential for double-digit return in the near future.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Buy This $3 Stock Now Before the 400% Surge Begins

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

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We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

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