ENVX stock risks being dismissed as ‘meme stock’ — and not in a good way

Is the party over for high-tech companies operating on the fringes of the AI boom?

Despite surging revenue, new defense contracts in South Korea, and the launch of its Fab2 manufacturing plant in Malaysia, lithium-ion battery maker Enovix (ENVX) has been on a steady slide in 2025.

Founded in 2007, Enovix develops high-energy density batteries for IoT, mobile, and AI-enabled devices.

The company grabbed headlines earlier this year after securing a pre-paid order from a “Silicon Valley-based technology leader” for its XR batteries designed to power smart eyewear and augmented reality headsets.

Enovix has beat Wall Street’s earnings and revenue expectations for three straight quarters, closing out a record 2024 with $23.1 million in sales — a 202% increase from the prior year.

A key milestone came in August 2024 with the opening of its Fab2 facility in Malaysia. Once fully ramped up, the site is expected to manufacture tens of millions of high-density batteries annually for consumer electronics.

But that capacity ramp hinges on one thing: demand.

So far, investors aren’t convinced. Despite the company’s growth narrative, ENVX stock is down 43% year-to-date and more than 56% below its January high.

Longer-term shareholders haven’t fared much better with the stock down over 54% in the past five years.

Looking under the hood

Even with repeated earnings beats, profitability remains elusive. In 2024, Enovix posted a net loss of $222.2 million, or $1.27 per share.

The company is burning cash and diluting shareholders to keep operations afloat. In October, Enovix announced a public offering of more than 10.4 million shares, raising $100 million. The deal closed a month later.

At the time, management said proceeds would fund working capital and support high-volume manufacturing at Fab2.

While the raise should keep Enovix capitalized through most of 2025, the clock is ticking to convert development wins into commercial success.

That’s why analysts are calling 2025 a make-or-break year. Enovix has made inroads with smartphone and IoT device makers.

But unless those partnerships start generating meaningful revenue, the company risks being written off as a “meme stock,” a label it’s been increasingly tagged with in recent months.