Nova, IBD Stock Of The Day, Flirts With Buy Point Amid Strong Chip Gear Demand
Dec 30, 2025 16:32:00 -0500 by PATRICK SEITZ
Nova (NVMI) is the IBD Stock Of The Day as the supplier of semiconductor manufacturing equipment sees strong business related to the artificial intelligence megatrend.
The Israel-based company provides advanced metrology and process control solutions used in chipmaking.
Cantor Fitzgerald analyst Matthew Prisco rates Nova stock as overweight, or buy, with a price target of 420.
In a Dec. 16 report, Prisco said he favors Nova as a “long-term investment” because of its “unique offering” and exposure to leading-edge chip manufacturing.
Prisco believes Nova stock and peers Camtek (CAMT) and Onto Innovation (ONTO) will “grind higher with the AI trend.”
In late morning trades on the stock market today, Nova stock flirted with a buy point of 338.35 from a cup-with-handle base, according to MarketSurge charts.
Nova gained a fraction to close at 336.04. Earlier in the session, it climbed as high as 339.74.
Nova Stock Rebounds From Disappointing Guidance
On Nov. 6, Nova stock tumbled 8.2% to close at 314.02 after the company reported third-quarter results and guidance. Its Q3 numbers were a tad above estimates, but its outlook was “slightly disappointing” as it sees a sequential decline in Q4, Jefferies analyst Blayne Curtis said in a report.
Nova earned an adjusted $2.16 a share on sales of $224.6 million in the September-ended quarter. On a year-over-year basis, Nova’s earnings increased 24% while sales climbed 26%.
For the fourth quarter, it forecast adjusted earnings of $2.11 a share on sales of $220 million, based on the midpoint of its outlook. That would translate to growth of 9% in earnings and 13% in revenue.
Its 2026 guidance was “a bit muted,” given its growth outlook is weighted toward the second half of the year, Curtis said.
Nova stock is on two IBD lists: IBD 50 and Tech Leaders.
Nova ranks first in IBD’s semiconductor equipment industry group, according to IBD Stock Checkup. It has a best-possible IBD Composite Rating of 99.
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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