Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 15 Jan, 26 | INDI | Buy | USD 4.25 | USD 4.5 | USD 4.8 | 19 days | Closed |
10.59%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
indie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, autonomous vehicle, in-cabin, connected car, and electrification applications. It offers ultrasonic sensors for parking assist and systems; radar sensors for audio assistance and reverse information; front cameras for vehicle detection, collision avoidance, and sign reading; and side/inside cameras for blind spot and lane change assist, and driver behavior monitoring. The company also provides LiDAR for distance, speed, and obstacle detection, collision avoidance, and emergency brake system; and long range RADAR for audio assistance, obstacle detection, and ACC stop and go. In addition, it designs and manufactures photonic components on various technology platforms, including fiber Bragg gratings, low-noise lasers, athermal and tunable packaging, photonic integration, and low-noise and high-speed electronics. It provides solutions in the United States, South America, rest of North America, Greater China, South Korea, rest of the Asia Pacific, and Europe. The company was founded in 2007 and is headquartered in Aliso Viejo, California.
Expansion of Strategic Backlog: As of Q3 FY25, strategic backlog increased to USD 7.4 billion, representing a significant long-term revenue visibility improvement versus the prior year period
Decline in R&D Expenditure: Q3 FY25 R&D expense declined to USD 38.0 million, compared with USD 46.0 million in Q3 FY24
Cash Balance Reduction: As of Q3 FY25, cash and restricted cash declined to USD 171.2 million, compared with USD 284.5 million at FY24 year-end
Gross Margin Compression: Q3 FY25 non-GAAP gross margin declined to 49.6%, compared with 50.4% in Q3 FY24
The key investment risk for indie Semiconductor lies in its continued cash burn and reliance on long-term backlog conversion amid cyclical automotive demand, supply-chain constraints, and elevated leverage, which could delay the path to sustained profitability
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 4.25 | 3.8 | 4.5 | 4.8 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Revenue Stability Amid Mixed End-Market Conditions: During Q3 FY25, indie Semiconductor reported total revenue of USD 53.7 million, broadly stable compared to USD 54.0 million in Q3 FY24, reflecting resilience despite softer global automotive production trends. Product revenue remained the dominant contributor, underscoring the company’s continued relevance across ADAS and adjacent applications, while contract revenue experienced a marginal decline, reflecting project timing effects rather than structural demand weakness.
Gross Margin Profile and Cost Structure: On a non-GAAP basis, the company delivered a gross margin of 49.6% in Q3 FY25, marginally lower than 50.4% in Q3 FY24, primarily due to product mix and manufacturing inefficiencies related to supply-chain constraints. GAAP cost of goods sold declined modestly year-on-year, indicating initial benefits from operational discipline and procurement optimization initiatives.
Operating Expense Rationalisation: Operating expenses declined materially to USD 92.0 million in Q3 FY25 from USD 103.9 million in Q3 FY24, driven by meaningful reductions in research and development expenditure and restructuring-related costs. R&D spend fell as earlier platform investments matured, reflecting a shift toward monetisation and execution rather than expansionary development.
Improvement in Operating Loss: The company reported a GAAP operating loss of USD 38.3 million in Q3 FY25, an improvement from USD 49.9 million in Q3 FY24, highlighting progress in cost containment and operating leverage. This trend was also evident at the non-GAAP level, where operating losses narrowed meaningfully, reinforcing management’s stated trajectory toward profitability.
Net Loss and Earnings Profile: Net loss attributable to common shareholders narrowed to USD 38.3 million (USD 0.19 per share) in Q3 FY25 from USD 49.7 million (USD 0.28 per share) in Q3 FY24. The improvement was supported by lower operating losses and favorable movements in other income items, partially offset by higher interest expenses amid an elevated rate environment.
Strategic Execution and Design-Win Momentum: Operationally, indie strengthened its long-term growth profile, expanding its strategic backlog to USD 7.4 billion, supported by new ADAS, robotics, and industrial design wins. The launch of a Gen8 radar product by a Tier-1 partner incorporating indie’s chipset marked a significant validation of its technology roadmap and commercial execution capabilities.
Balance Sheet and Liquidity Position: As of September 30, 2025, the company maintained cash and restricted cash of USD 171.2 million, down from the prior year, reflecting continued investment in growth initiatives and acquisitions. While liquidity remains adequate in the near term, the balance sheet continues to reflect elevated leverage and accumulated losses, reinforcing the importance of sustained margin expansion.
Outlook: For Q4 2025, indie expects revenue in the range of USD 54 million to USD 60 million, with a midpoint of USD 57 million, and anticipates a non-GAAP gross margin of 46%–47%, while noting that package substrate supply shortages are expected to reduce the revenue outlook by approximately USD 5 million.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on indie Semiconductor, Inc. (Nasdaq: INDI) at the closing market price of USD 4.25, as on Jan 14, 2026.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Semiconductor Equipment & Materials
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| INDI indie Semiconductor Inc |
0.32 8.14% | 4.25 | - | 128.21 | 3.44 | 1.72 | 3.87 | -10.5295 |
| ASML ASML Holding NV ADR |
61.85 3.31% | 1929.68 | 48.54 | 41.49 | 17.21 | 23.21 | 14.06 | 36.48 |
| ASMLF ASML Holding NV |
- -% | 1937.15 | 48.31 | 41.32 | 16.88 | 23.07 | 14.07 | 36.51 |
| AMAT Applied Materials Inc |
24.19 4.08% | 617.11 | 40.44 | 36.23 | 11.09 | 14.41 | 11.04 | 30.52 |
| ADTTF Advantest Corporation |
- -% | 150.42 | 78.05 | 44.84 | 0.12 | 29.94 | 19.93 | 49.55 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on January 15, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
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Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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