{"id":45483,"date":"2023-08-07T13:06:15","date_gmt":"2023-08-07T17:06:15","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/enovix-exciting-growth-potential-of-wearable-battery-solutions-nasdaqenvx\/"},"modified":"2023-08-07T13:06:18","modified_gmt":"2023-08-07T17:06:18","slug":"enovix-exciting-growth-potential-of-wearable-battery-solutions-nasdaqenvx","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=45483","title":{"rendered":"Enovix: Exciting Growth Potential Of Wearable Battery Solutions (NASDAQ:ENVX)"},"content":{"rendered":"
\n

<\/picture>
<\/figcaption><\/figure>\n<\/p>\n

Investment Thesis<\/h2>\n

Enovix (NASDAQ:ENVX<\/span>) continues to be an impressive company. And yet, it’s a highly shorted company. The bear case is the doubt over whether Enovix can, in actuality, gain enough scale to be a meaningful battery producer.<\/p>\n

This quarter cements my view that this company should be taken seriously. Readers are not too late to buy this stock.<\/p>\n

Rapid Recap<\/h2>\n

In my previous analysis, I stated that,<\/p>\n

\n

Enovix is a pre-revenue business<\/strong>. That means that it’s not yet generating revenues and isn’t expected to start reporting revenues until 2024.<\/p>\n[…] The business is running at full speed, while raising funds, to produce millions of batteries for top tier 1 tech businesses. Presently, leading global OEMs’ (original equipment manufacturer) customers are trialing the batteries and their rollout is expected to start slowly.<\/p>\n<\/blockquote>\n

\n

\"ENVX <\/picture>
\n

ENVX Investor Presentation<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n

The graphic above speaks of the Total Addressable Market that Enovix is targeting in the very near term.<\/span><\/p>\n

Why Enovix?<\/h2>\n

To repeat, this business is not generating any revenues at this moment in time. Enovix’s BrakeFlow batteries provide more energy capacity than traditional lithium-ion batteries.<\/p>\n

In plain English, this means that Enovix is one of the leading players in the world to make wearable batteries that heat up significantly less than conventional batteries.<\/p>\n

Wearable devices are extremely powerful, but it’s the batteries on wearables that stand in the way of them being maximally productive. And that’s what Enovix is seeking to solve.<\/p>\n

Why Enovix Now?<\/h2>\n

The graphic below highlights what makes Enovix’s batteries different.<\/p>\n

\n

\"ENVX <\/picture>
\n

ENVX Q2 2023<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n

Enovix’s BrakeFlow technology prevents the battery from overheating. This allows the batteries to deliver more capacity. Why would you need more capacity? See below.<\/p>\n

\n

\"ENVX<\/span> <\/picture>
\n

ENVX Q2 2023<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n

As my followers will know, AI is extremely power-hungry. Everyone wants AI technology, but few are willing to admit the rapidly rising costs associated with this technology.<\/p>\n

The only way to tackle the rising costs of AI is through better technology.<\/p>\n

Quarterly Update, Rapid Progress<\/h2>\n

Enovix continues to deliver rapid progress. Here’s a quote that gets to the heart of my bullish thesis on Enovix,<\/p>\n

\n

I am happy to share that Enovix has established engagements for smartphones with leading OEMs like Xiaomi, Vivo, and Lenovo. Xiaomi and Vivo were both top 5 OEMs globally in smartphone shipments in 2022, according to IDC. And Lenovo\u2019s Motorola brand held the No. 3 market share spot among mobile vendors in the U.S. during the second quarter, according to StatCounter Global Stats<\/p>\n<\/blockquote>\n

Enovix has consistently maintained that every quarter of 2023 it would double the number of batteries it produces. Here’s their progress.<\/p>\n