As 2025 approaches, several promising microcap stocks are gaining attention for their potential to disrupt key industries. These companies, although small in market size, have achieved significant success through innovative technology and strategic advancements. From revolutionary AI-powered chips to life-changing healthcare devices and advanced 3D metrology solutions, these companies are well positioned for future growth. Here’s a closer look at three microcap stocks that could be on the cusp of a major breakout next year.
BrainChip: The quest to empower artificial intelligence with brain-like efficiency
BrainChip today
(As of 12/27/2024 5:50 PM ET)
- 52 week range
- $0.10
▼
US$0.36
Brain Chip OTsMCTs: BRChF is a micro-cap software and semiconductor company focused on neuromorphic computing. The goal of neuromorphic computing is to mimic the way the human brain processes information. The value of this technology lies in performing AI and machine learning tasks with much lower power consumption than other AI accelerator chips. At this point, BrainChip is largely considered a profitable project. Although there were quarters when the company brought in several million dollars in revenue. The company mainly obtained patents for its technologies and improved its designs.
The low power consumption of the company’s chips is vital to their value proposition. This makes these chips ideal for AI-powered edge computing. Here, the chips process information close to the source they receive it from, rather than sending it back to a data center for processing. It is especially useful to reduce power consumption in devices that can operate for a long time without recharging, such as electric vehicles.
There was recent optimism surrounding the company after the Air Force Research Laboratory awarded it a $1.8 million contract. The income aspect of this is somewhat minor, but it represents an opportunity for company expansion. The military wants to use BrainChip technology in mobile platforms such as drones, robots and aircraft. The press release indicates that the company’s technology has entered the second phase of the Small Business Innovation Research Program. If the company can advance to Phase III of this program, it could move on to operational use by the military. This indicates progress towards much stronger earnings generation, making this a stock worth keeping an eye on in 2025.
Myomo: Changing Lives with Robotic Mobile Solutions
Miomo today
(As of 12/27/2024 5:45 PM ET)
- 52 week range
- $2.51
▼
$6.74
- Target price
- $8.25
Mouth NYSEAMERICAN: MOYO is a microcapsule in the healthcare space that has had a strong 2024 as it gained momentum with its innovative MyoPro device. MyoPro is a robotic arm support. Helps people with neuromuscular disorders and upper body paralysis. The corset senses and amplifies electrical signals from the user’s body. This helps restore movement and improve daily tasks. The company is still very small, with just $25 million in revenue over the last 12 months. However, optimism is growing due to a sharp acceleration in the company’s revenue growth. In the first quarter, growth was only 9%. However, in the third quarter this figure exceeded 80%. Record third-quarter sales ($9.2 million) were nearly 2.5 times higher than first-quarter sales ($3.7 million).
The company reached a major milestone in May. The company received its first one-time reimbursement for MyoPro from the Centers for Medicare and Medicaid Services (CMS). CMS oversees the Medicare and Medicaid programs. It pays health care workers and suppliers to care for patients. Payment by CMS constitutes approval of MyoPro as an effective and cost-effective treatment option.
It also greatly increases the likelihood of future purchases. This gives beneficiaries the peace of mind that their out-of-pocket costs will be significantly reduced if they use MyoPro. It also increases the likelihood that healthcare providers will recommend these devices. This gives them proof that they will receive their payments on time. Miomo believes this Medicare reimbursement precedent doubles its overall market reach. This makes the stock worth considering in 2025.
FARO: Increasing profitability and growth prospects for 3D metrology
FARO Technologies today
FARO Technologies
(As of 12/27/2024 5:16 PM ET)
- 52 week range
- $13.52
▼
$29.30
- Target price
- US$29.50
FARO Technologies NASDAQ: LIGHTHOUSE it is a significantly larger business than the other two. Sales totaled nearly $350 million over the past 12 months. FARO produces hardware and software for three-dimensional (3D) measurements. Its products scan objects and create accurate digital models. Engineers can modify these models and combine them to create a product or system. Its products are used in many industries, including automotive, aerospace and mechanical engineering.
FARO made significant progress in its profitability in 2024. It delivered positive operating margins over the past 12 months and normalized its net profit margin for the first time since early 2019. Now she needs to compensate for falling sales. Analysts predict the company will return to sales growth in the final nine months of 2025. New products such as Quantum Arm X and Focus Premium Max provide improved quality and expand FARO’s capabilities. The prospect of these products reviving growth, coupled with FARO’s significantly improved profitability, makes this a stock worth watching in 2025.
Before you consider FARO Technologies, you need to hear this.
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While FARO Technologies currently has a Buy rating among analysts, the top-rated analysts rate these five stocks as Outperform Buys.
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