Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 6 Mar, 25 | LAES | Buy | USD 2.42 | USD 2.7 | USD 2.85 | 3 days | 17.8% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
SEALSQ Corp, together with its subsidiaries, designs, develops, and markets semiconductor chips in Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. It offers semiconductors, such as VaultIC secure elements, secure arm platform, and smart card reader chips; identity provisioning services, such as IoT device provisioning and chip provisioning; and managed PKI for IoT solutions and trust services. The company provides device-to-cloud authentication, device attestation for matter, GSMA root certificate, device-to-device authentication, data protection, anti-counterfeiting and brand protection, security access, device ID provisioning, identity lifecycle management, and satellite IoT connectivity solutions. Its products are used in various applications, such as smart energy, smart home, automotive EV charging, consumer IoT, aerospace and military, telecommunications, logistics, medical, luxury, and other industrial applications. SEALSQ Corp was founded in 2022 and is based in Cointrin, Switzerland.
Increase in Confirmed Bookings – The company reported $6.4 million in confirmed bookings for 2025, reflecting an 80% increase compared to the same period in 2024, indicating growing demand for its quantum-resistant technologies
Strong Cash Position – SEALSQ ended 2024 with a cash reserve of $85 million, which increased to over $90 million in early 2025, providing financial stability for continued innovation and expansion
Higher R&D Costs – The company increased its R&D expenses by $1.4 million year-over-year, surpassing $5 million in total R&D spending for 2024, which, while essential for innovation, has put additional pressure on short-term profitability
Revenue Decline – FY 2024 revenue is expected to be approximately $11 million, a 63% decline from $30 million in 2023, primarily due to the transition toward post-quantum semiconductor technologies and delayed customer purchases
SEALSQ faces key investment risks, including the uncertainty of market adoption for its post-quantum semiconductor technology, significant revenue decline during the transition phase, high R&D costs impacting short-term profitability, and potential supply chain disruptions affecting production and expansion efforts
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 2.42 | 2.15 | 2.7 | 2.85 |
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.
Advancing Post-Quantum Security and Semiconductor Innovation
SEALSQ has officially launched its SEAL Quantum roadmap, marking a significant step forward in post-quantum security and semiconductor technology. With a vision to eliminate hardware barriers and accelerate quantum computing adoption, SEALSQ is set to unveil its SEAL Quantum-as-a-Service platform in 2025. This initiative will enable enterprises to utilize diverse computing architectures tailored to their specific needs, fostering innovation across multiple industries. Strengthening this vision, SEALSQ has formed strategic partnerships with leading quantum computing companies, ensuring seamless integration and access to cutting-edge technologies.
Breakthroughs in Quantum-Resistant Security
A major milestone in 2024 was SEALSQ’s advancement in quantum-resistant chip technology, which aims to safeguard critical infrastructure, IoT networks, and financial systems against quantum-enabled cyber threats. This breakthrough solidifies SEALSQ’s leadership in post-quantum security and is expected to drive new market opportunities as organizations and governments prepare for the quantum era. The full-scale commercial deployment of these quantum-resistant chips is projected to generate substantial revenue starting in 2025.
Integration of Post-Quantum Security in AI
With the increasing adoption of artificial intelligence (AI) across industries, the need for robust cybersecurity has never been greater. AI systems handle vast amounts of sensitive data, making them prime targets for cyber threats. SEALSQ’s quantum-resistant semiconductors provide essential security layers to protect AI-driven applications, ensuring secure data exchanges, intellectual property protection, and compliance with evolving cybersecurity regulations. By embedding these advanced chips within AI infrastructures, SEALSQ enables businesses in sectors such as healthcare, finance, and autonomous systems to implement secure and resilient AI solutions.
Expansion into IoT and Satellite Connectivity
SEALSQ continues to expand its presence in the IoT and satellite connectivity sectors, leveraging its semiconductor expertise to address critical connectivity challenges. The development of the WISeSat picosatellite constellation, in collaboration with WISeSat.Space, is aimed at enhancing IoT connectivity in remote and low-bandwidth regions. This initiative not only strengthens SEALSQ’s technological leadership but also creates new revenue streams by catering to the increasing demand for secure, global IoT solutions.
Strong Financial Performance and Investment in Innovation
SEALSQ has maintained a strong financial position, ending 2024 with a cash reserve of $85 million, which increased to over $90 million in early 2025. This solid financial foundation enables the company to invest in innovation, global expansion, and strategic initiatives. Furthermore, the company successfully cleared its balance sheet of all convertible debt and associated warrants, improving its financial flexibility and enhancing its ability to attract future investment. However, as SEALSQ transitions toward post-quantum semiconductor technologies, revenue for FY 2024 is estimated at approximately $11 million, reflecting a shift from traditional microcontrollers to next-generation quantum-resistant solutions. Despite this temporary decline from $30 million in 2023, the company remains confident in the long-term growth prospects of its technology.
Strategic Growth and Market Expansion
SEALSQ is actively expanding its global market presence, securing over 10 strategic channel partnerships across key regions, including the United States, India, Japan, Israel, and Europe. Collaborations with major electronic distributors, such as OKAYA in Japan and DIGIKEY for online sales, are reinforcing the company’s market recognition and unlocking new growth opportunities. Additionally, SEALSQ has secured contracts to provide secure microcontroller solutions for smart metering devices, further solidifying its position in the cybersecurity-driven semiconductor sector.
Future Outlook and 2025 Strategic Priorities
Looking ahead, SEALSQ remains focused on scaling its production capacity for two new quantum-resistant chips set to launch in 2025. The company is also developing a new business line of post-quantum ASICs and intellectual properties, engaging in advanced discussions with major technology firms. SEALSQ’s confirmed 2025 bookings stand at $6.4 million, marking an 80% increase compared to the previous year, with a pipeline of $93 million in potential contracts over the next three years. With a continued emphasis on research and development, strategic partnerships, and cybersecurity advancements, SEALSQ is poised for sustained long-term growth in the post-quantum security and semiconductor industries.
Technical Commentary:
LAES's stock price is currently positioned near important support levels, indicating a potential for an upward reversal in the near future. The 14-period RSI is trending below the midpoint, suggesting a possible upward pullback. Additionally, the stock is trading below its 21-day Simple Moving Average, and it may retrace to this level soon.
Considering recent key business, financial updates, current trading levels, technical indicators, and key business risks, a ‘Buy’ recommendation has been given on SEALSQ Corp (NASDAQ: LAES) at the closing market price of USD 2.42, as on March 05, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Semiconductors
| 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) |
|---|---|---|---|---|---|---|---|---|
| LAES SEALSQ Corp |
0.15 5.96% | 2.75 | - | - | 1.00 | 5.95 | 1.28 | -25.8475 |
| NVDA NVIDIA Corporation |
0.72 0.66% | 109.10 | 62.11 | 36.76 | 36.43 | 51.65 | 36.19 | 61.96 |
| AVGO Broadcom Inc |
-0.18 0.11% | 167.25 | 139.68 | 28.99 | 17.14 | 12.73 | 19.13 | 40.92 |
| TSM Taiwan Semiconductor Manufacturing |
2.36 1.42% | 168.36 | 19.45 | 15.92 | 0.24 | 4.85 | 0.22 | 0.30 |
| AMD Advanced Micro Devices Inc |
-0.835 0.81% | 101.91 | 244.65 | 48.78 | 11.64 | 4.72 | 11.51 | 62.93 |
Data Powered by EOD Historical Data (“EODHD”).
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 is March 05,2025. The reference data in this report has been partly sourced from REFINITIV.
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.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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