Here are 5 small-cap Stocks that I Believe are Primed for a Turnaround
2024 was a tough year for most small-caps but 2025 will be the year of small-caps -- here are 5 small-cap stocks that I believe are primed for a turnaround 🧐
Aehr has carved out a niche so precise that it almost defies replication. Focused on testing and burn-in solutions, Aehr ensures the reliability of silicon carbide (SiC) devices -- components essential for EVs and renewable energy systems. SiC’s role in these markets is both foundational and expansive, as demand for high-efficiency power systems surges. Aehr’s low-cost wafer-level testing stands out, offering manufacturers a critical tool to improve yields and cut costs.
Yet, Aehr’s story isn’t without complexity -- revenue growth has been volatile, oscillating with market forces. Even so, the company’s FOX platform is a linchpin, poised to capitalize on SiC’s growing ubiquity across sectors like EVs, solar energy, and even AI hardware.
Enovix, which focuses on advanced lithium-ion battery technology, faced growing pains in 2024 as it worked to scale its production capabilities. Yet the market dynamics for energy storage are increasingly in its favor. With the AI and EV revolutions driving demand for better batteries, Enovix’s proprietary 3D architecture stands out for its ability to deliver higher energy density and faster charging.
While consumer electronics remain its primary market today, the company’s entry into the EV space represents a massive opportunity. Enovix is addressing a real and urgent problem--one that will only intensify as industries race to meet the demands of a more electrified future.
3. $Jumia Technologies AG(JMIA)$
Then there’s Jumia, solving a puzzle that global giants like $AMZN and $BABA have yet to crack: e-commerce in Africa. 2024 was a year marked by operational inefficiencies and macroeconomic challenges in its core African markets. In this region, the barriers aren’t just operational—they’re logistical. Many areas lack physical addresses or reliable infrastructure, complicating deliveries in ways that traditional models simply can’t handle.
Jumia has built a logistics network that doesn’t just support e-commerce -- it powers it. Over 50% of its orders now come from outside major cities, demonstrating its ability to reach underserved areas. This isn’t a business model that can easily be replicated. For international competitors, the choice is clear: invest billions to build comparable infrastructure or partner with Jumia. Either way, Jumia is positioned to benefit.
4. $Indie Semiconductor Inc.(INDI)$
Indie is redefining automotive intelligence. Their diversified portfolio -- encompassing ADAS systems, radar, LiDAR, and electrification technologies -- aligns perfectly with the industry's trajectory toward smarter, safer, and more connected vehicles. Indie’s strategic backlog surpasses $7B, a figure that underscores the scale of its ambitions. With revenue growth projected at 40% in 2025, the company is navigating the intricate web of automotive semiconductors with finesse. Its ability to integrate all four key ADAS sensor modalities gives it a rare advantage, positioning it as a sought-after partner for automakers designing the next generation of vehicles.
Still, challenges loom -- concentrated exposure to China and potential bottlenecks in EV adoption could impede progress. Yet, indie’s strong pipeline and operational resilience suggest it is well-equipped to weather these uncertainties.
5. $Navitas Semiconductor Corp(NVTS)$
Navitas Semiconductor, a leader in gallium nitride (GaN) technology, also struggled in 2024, facing revenue stagnation and high cash burn. GaN’s efficiency and speed eclipse traditional silicon solutions, making it a cornerstone for applications spanning mobile devices, data centers, and EVs. With over 60 design wins in data centers signal its disruptive potential, and a partnership with Infineon amplifies its credibility. This collaboration, strategically vital, could accelerate GaN adoption while positioning Navitas as an acquisition target.
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