Artificial intelligence chipmaker Nvidia (NVDA) has been hogging the headlines in 2024. However Impinj (PI) has been on a stellar run so far of its own, proving there are many ways to make good gains in the semiconductor space.

Now the stock is eyeing a potential new entry as earnings continue to accelerate for the product-tagging play.

The Seattle-based company specializes in radio frequency semiconductors that identify, locate and authenticate items. It has a broad reach, and operates in the Americas, Asia Pacific, Europe, Middle East and Africa.

Overall performance for the IBD Sector Leader is strong, reflected in its near-perfect IBD Composite Rating of 98. Stellar earnings supports that impressive price performance. In fact, it holds a best-possible EPS Rating of 99.

The firm snapped three quarters of earnings declines back in July, when second-quarter earnings grew 152% year-over-year. Growth was even better in the most recent quarter, with the firm beating views and turning in annualized growth of 5,500%.

So far in 2024 Impinj stock has risen more than 110%, an impressive performance in anybody's book. Progress from its October 2023 low of 48.39 is even better, coming in at more than 300%.

Stock Market Analyst Bullish

Wall Street experts are bullish on Impinj. Susquehanna senior analyst Christopher Rolland issued a "positive" rating on the stock with a price target of 260 following its earnings beat in late October.

"Impinj reported better-than-expected results and guidance, driven by strength in supply chain and logistics, steady growth in retail general merchandise, and continued secular growth in both apparel and long-tail applications," he said in an Oct. 24 note to clients.

He added that he was "glad to see another solid near-term report from Impinj, while the long-term opportunity set broadens with new opportunities into an unpenetrated TAM (Total Addressable Market)."

Institutional investors have been snapping up the stock of late, with its Accumulation/Distribution Rating sitting at B+. Notable holders include the Wasatch Micro Cap Fund (WMICX) and the Invesco Discovery Class A Fund (OPOCX) — both part of the IBD Mutual Fund Index.

Impinj Stock Eyes Buy Point

The product-tracking company has formed an consolidation with an entry point of 239.88, according to MarketSurge analysis. However, the pattern fits the profile of a double bottom, which presents a buy point at 211.45.

This is a second-stage base, a bonus. Such early stage patterns are more likely to net good gains for investors, IBD research has found.

The relative strength line for Impinj stock is bending higher as it moves off consolidation lows. The stock's near-term goal will be to retake its 50-day moving average. This would also offer an alternative entry for aggressive investors.

Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.

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