The Russell 2000, that unassuming tracker of small-to-mid-cap enterprises, had something of a temperate 2023, not quite matching the vivacious strides of the S&P 500 or the effervescent leaps of the Nasdaq. Despite its initial steps into 2024 faltering, with the index now down over 1%, the S&P 500 and Nasdaq are jauntily trading higher at 5.1% and 4.4%, respectively.

Yet, beneath this canvas lie treasures, gems that entice the eye of Wall Street, sparking intrigue and enthusiasm. Amongst them, three stars twinkle with promise.

Navitas Semiconductor Corporation (NVTS)

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Navitas Semiconductor Corporation (NASDAQ:NVTS) engineers gallium nitride power integrated circuits and digital isolators, pivotal to power conversion and charging. They cast their nets wide, with end-market applications spanning data centers, solar energy, electric vehicles, and the labyrinth of the smart grid. Beyond the borders of the United States, their influence dances across Europe, China, and the vivid tapestry of Asia.

A highlight in their Q3 earnings report was the spotlight on their gallium nitride solutions, heralded for enabling swift charging not just in electric vehicles but also in the pulsing hearts of modern mobile phones. Giants of the Chinese smartphone realm—Oppo and Xiaomi—have unfurled these technologies, delivering devices that crackle with the promise of fast charging. Their coffers swelled with a 22% surge in revenues during the third quarter, hinting at further crescendos as the handset market steels itself for a renaissance.

With Wall Street’s rose-tinted spectacles firmly in place, Navitas Semiconductor wears a badge of honor—an unwavering “Strong Buy” rating.

ACM Research

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ACM Research (NASDAQ:ACMR) takes center stage as a semiconductor equipment provider, a silent behemoth prowling the waters of technological innovation. Since the halcyon days of 2023, this company has emerged as a dazzling star in the firmament of Russell 2000 stocks. They furnish semiconductor manufacturers with wet processing equipment and technologies. A keen focus on China’s burgeoning semiconductor domain positions them for a prosperous voyage as this sector unfurls fresh banners of technological prowess.

The tale of ACM Research in 2023 was one of triumph, with earnings that outperformed the wildest dreams of Wall Street sages. A meteoric rise of over 153% in share price was a tale whispered in the halls of traders. But let us not stray too far from the embrace of China’s economic revival, for it is an embrace that holds both risk and reward. Each stumble in China’s economic waltz casts shadows on ACMR, evident in the whispers of a 6% dip in share price as 2024 dawned.

Nevertheless, ACM Research sits at a table adorned with affordable raiments. Their forward EV/EBITDA stands at a modest 10.1x, while their forward P/E ratio rests at 17.3x. These humble metrics, entwined with a garden of growth prospects, could be just the elixir needed to rouse ACMR from its present slumber.

Q2 Holdings

Q2 Holdings: Fintech at the Forefront of Digital Banking Solutions

The Rising Star of Fintech

Q2 Holdings (NYSE:QTWO) shines brightly as the sole fintech luminary gracing this prestigious list. With a focus on empowering community and regional banks with cutting-edge digital banking solutions, Q2 stands as a beacon of innovation in the financial technology landscape. For over a decade, since its initial public offering, Q2 has consistently delivered robust double-digit revenue growth year after year, a feat that few can rival.

Financial Performance

In its most recent quarterly report, Q2 Holdings met the lofty expectations set by Wall Street analysts. The company posted a fourth-quarter revenue of $162.1 million, showcasing a remarkable growth rate of over 11% year-over-year. For the full fiscal year, Q2’s revenue reached approximately $624.6 million, marking a steady expansion of just over 10% compared to the previous year.

Market Analysts and Investor Sentiment

Market sentiment remains overwhelmingly bullish on Q2 Holdings, with 16 esteemed analysts closely monitoring the company. Their vote of confidence is resoundingly clear, maintaining a steadfast “Strong Buy” rating on Q2. Investors have rewarded this confidence, with Q2 shares soaring by an impressive 25.7% over the past 12 months, a testament to the company’s value proposition and growth trajectory.

On the date of publication, Tyrik Torres did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.