On Thursday, shares of Enovix Corp. (NASDAQ:ENVX) shot up after the company that makes next-generation lithium-ion batteries announced a number of important milestones. The news made ENVX (NASDAQ:ENVX) stock go up by more than 30%.
Late on Wednesday, the Fremont, California-based company announced its first income since going public in January 2021. In the second quarter, it began sending out battery cells for sale. As interest in its products grows, Enovix Corp. (NASDAQ:ENVX) also announced important customer-related milestones.
About Enovix
ENVX (NASDAQ:ENVX) makes high-tech lithium-ion batteries with silicon anodes. The company’s own 3D cell architecture makes the energy density higher and keeps the cycle life high. Its first market is batteries for mobile devices, but the company plans to grow into the electric vehicle and energy storage markets.
During the June quarter, Enovix Corp. (NASDAQ:ENVX) made $5.1 million from services and a small amount from commercial battery cells. The money mostly came from one customer. But the company (NASDAQ:ENVX) sent battery cells to 10 electronics makers and 4 distributors so that they could test and qualify them. The company said that it is now working with some of the biggest consumer electronics companies in the world, which could lead to a lot of sales.
The News Aftermath
Enovix Corp. (NASDAQ:ENVX) stock shot up 30.8% on the stock market today, ending the day at 21.13. The IBD Relative Strength Rating for ENVX (NASDAQ:ENVX) stock is 96, which means that it has done better than 96% of other stocks over the past year.
Enovix Corp. (NASDAQ:ENVX) expects to make between $6 million and $8 million in sales for the whole year.
In a letter to shareholders, CEO Harrold Rust and CFO Steffen Pietzke said, their focus is completely fixed on getting to $1 billion in sales with the best margins in the industry over the next few years.
Apple, Meta, and Samsung could be clients of Enovix
Ananda Baruah, an analyst at Loop Capital, said that Enovix Corp. (NASDAQ:ENVX) stock is still a “buy” with a price target of $50.
Baruah told clients that the company is probably working on technology qualifications for its batteries with Apple Inc. (NASDAQ:AAPL), Facebook parent company Meta Platforms Inc. (NASDAQ:META), and Samsung Electronics Co Ltd. (NASDAQ:SSNLF). ENVX (NASDAQ:ENVX) has said that the U.S. Army is one of its customers.
Anthony Stoss, a stock analyst at Craig-Hallum, kept his buy rating on Enovix Corp. (NASDAQ:ENVX) stock and raised his price target for the stock from $20 to $25.
Stoss said in his note to clients that Enovix Corp. (NASDAQ:ENVX) probably started sending batteries to Garmin Ltd. (NYSE:GRMN), its first smartwatch customer, in the second quarter.
“We also want to point out that the company got its first order for smartwatch engineering from one of the biggest consumer electronics companies in the world (we think it was Apple Inc. (NASDAQ:AAPL)) in the last quarter,” Stoss said. “This first order should give ENVX (NASDAQ:ENVX) a chance to show how its battery technology can be used across this customer’s wide range of electronics.”
Stoss said that Apple Inc. (NASDAQ:AAPL)‘s strict qualification processes mean that the company won’t bring in much money until at least 2024.
Featured Image: Megapixl © Ghwitton
