We came across a bullish thesis on MicroVision, Inc. (MVIS) on Twitter by Specter Capital. In this article, we will summarize the bulls’ thesis on MVIS. MicroVision, Inc. (MVIS)'s share was trading at $1.24 as of March 31^st.

A close-up of a LiDAR-on-chip sensor mounted in a consumer-grade electronic device.

MicroVision (MVIS) is on the verge of a major breakout, yet the market remains oblivious. Palmer Luckey, the tech visionary behind Oculus VR and the founder of Anduril, has publicly expressed his belief in MVIS’s technology, signaling a potential game-changing development. This isn't just casual interest—Luckey has been actively engaging with online discussions, closely monitoring sentiment around the company. Given his track record of revolutionizing industries and his growing influence in military-grade AR, his involvement suggests something significant is underway.

At the center of this unfolding opportunity is the $22 billion IVAS (Integrated Visual Augmentation System) contract. Anduril has spent over a year positioning itself to take over the program from Microsoft, and MicroVision’s technology could be the missing piece. With its high-quality LiDAR and AR-related tech, MVIS is uniquely suited to complement Anduril’s ambitions. Despite this, the stock remains severely undervalued at $1.50, overlooked by Wall Street, and trading at a fraction of its potential worth.

The setup is clear: either an acquisition or a major partnership between Anduril and MicroVision is imminent. Signs point to a decisive move by March, making the current sub-$2 price an attractive entry point with an asymmetric risk-reward profile. Even without a buyout, the stock is primed for an organic rerating as the market digests these developments. The combination of a revolutionary tech entrepreneur, a massive government contract, and an undervalued company creates a rare investment opportunity.

MicroVision, Inc. (MVIS) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held MVIS at the end of the fourth quarter which was 5 in the previous quarter. While we acknowledge the risk and potential of MVIS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MVIS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article was originally published at Insider Monkey.