We recently published an article titled Why These 15 Semiconductor Stocks Have Been Plunging So Far in 2025. In this article, we are going to take a look at where Shoals Technologies Group, Inc. (NASDAQ:SHLS) stands against the other semiconductor stocks.

Wall Street has gotten increasingly bearish on semiconductor stocks over the past few months as concerns about the profitability and sustainability of AI have gained traction. This was compounded by DeepSeek at first. The market recovered from that, but as Microsoft started canceling some data center leases and Nvidia failed to beat earnings by stellar margins, sentiment has turned sour again.

AI-related semiconductor stocks, which have been pick-and-shovel plays, are bearing the brunt of the selloffs, as they are the ones sitting on top of a two-year-long rally. This is a cyclical industry, so it’s possible that semiconductor stocks are now shifting into a bearish phase.

You should keep up with these stocks, as they’ve delivered multibagger gains over the past two years. There’s a good chance that the AI narrative recovers from here. And even if it doesn’t, it’s still worth looking into the big losers and the reasons behind their decline.

Methodology

For this article, I screened the worst-performing semiconductor stocks year-to-date.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Close-up of a technician doing IV curve benchmarking device testing in a technology lab.

Shoals Technologies Group, Inc. (NASDAQ:SHLS)

Number of Hedge Fund Holders In Q4 2024: 31

Shoals Technologies Group, Inc. (NASDAQ:SHLS) provides electrical balance of system solutions and components.

The stock is down significantly so far in 2025, as Shoals projected first-quarter revenue of $70 million to $80 million. This came in significantly below the $109 million consensus.

Furthermore, Shoals reported Q4 2024 EPS of $0.08 and missed analyst expectations of $0.09. Revenue for the quarter was $107 million, down 18% from the prior-year quarter. Gross profit margins also fell to 37.6% from 42.5%.

Plus, the U.S. International Trade Commission reversed an earlier ruling in Shoals’ favor regarding a patent infringement case against Voltage LLC.

The consensus price target of $8.95 implies 209.69% upside.

Shoals Technologies Group, Inc. (NASDAQ:SHLS) stock is down 46.56% year-to-date.

Overall SHLS ranks 4th on our list of the semiconductor stocks that have been plunging so far in 2025. While we acknowledge the potential of SHLS 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 time frame. If you are looking for an AI stock that is more promising than SHLS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: Why These 15 Insurance Stocks Are Skyrocketing So Far In 2025 and Why These 15 AI Stocks Are Plunging So Far in 2025

 

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