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/NVEC
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NVE Corp

NVE Corp

NVEC
$86.31USD↓-0.68%-0.59 today

MARKET CAP

417.5M

P/E (TTM)

27.5x

FWD P/E

27.5x

DAY RANGE

$83 – $90

52W RANGE

$57
$121

AI Summary

Stalk
TrimMedium

NVEC has decisively broken below key support in Stage 3 distribution, with moving averages now capping rallies and volume skewed to down days, indicating sustained selling pressure. The medium-term outlook is bearish, but price is extended below EMAs and prior support turned resistance, suggesting better sell entries on a pullback. Long-term trend remains up, anchoring potential for future recoveries, but execution requires patience until price rejects from the 50-day or reclaims area. We will defer aggressive selling until a failed reclaim of resistance confirms continued breakdown.

  • ↑34% YoY non-defense product sales drove 5% revenue rise to $7.65 M
  • ↑Generated $16.7 M cash flow from operations, supporting $1/share dividend
  • ↓Elevated leverage heightens risk if revenues falter
Full analysis →

The case for & against

Bull & Bear analysis

Bearish

NVE Corporation (NASDAQ: NVEC) is a leader in the development of silicon-based spintronic products utilized in high-value applications, including medical devices, electric vehicles, and industrial automation. As a key player within the semiconductor industry, NVE focuses on advancing technologies that emphasize reliability, efficiency, and miniaturization to meet the evolving demands of various markets. The company is currently navigating a phase marked by significant changes in executive leadership and board composition alongside strong opportunities in both defense and non-defense sectors.

Bull says

  • ↑34% YoY non-defense product sales drove 5% revenue rise to $7.65 M
  • ↑Generated $16.7 M cash flow from operations, supporting $1/share dividend
  • ↑Committed $2.19 M capex to expand manufacturing efficiency ahead of demand
  • ↑62% operating margin highlights cost control amid rising R&D investments
  • ↑Proprietary spintronic sensors and wafer-scale packaging bolster technological moat
  • ↑Attractive dividend yield and strong liquidity may benefit from easing rates

Bear says

  • ↓Elevated leverage heightens risk if revenues falter
  • ↓Variable contract R&D revenue plunged 68%, tightening growth outlook
  • ↓Gross margin fell to 78% as lower-margin distributor sales rose
  • ↓Rare-earth magnet shortages and industry competition pose supply risks
  • ↓Negative profitability and weak growth factors weigh on valuation
  • ↓Tariff-driven recession risk could hit both defense and non-defense sales

Earnings Call · Q4 2026 · Mgmt. Guidance

Updated 05-12-2026bullish

Transcript signals

Bull points

  • Fourth quarter total revenue increased 5% year over year to $7.65 million, driven by a 6% increase in product sales, with a notable 34% increase in non-defense product sales.
  • We see a continued bright outlook for product sales with favorable semiconductor industry conditions in our new products. We have ample inventories to support increased demand.
  • The defense business has been steadily recovering over the past year, and we currently expect defense sales to increase significantly this fiscal year, the year ending March 31, 2027.

Bear points

  • Interest income in the quarter decreased 6% due to a decrease in our marketable securities portfolio as proceeds from bond notaries help us pay generous dividends.
  • We expect such credits to decrease significantly in fiscal 2027 since we expect manufacturing equipment purchases to decrease significantly with the completion of our expansion.
  • We expect fixed asset purchases to decrease significantly in fiscal 2027 with the completion of our expansion.
Read full transcript analysis ›