Lake Street Identifies Lantronix (LTRX) as a Hidden Gem Driven by Drone Industry Traction, Tier-1 Wireless Demand

Lantronix Inc. (NASDAQ:LTRX) is one of the hot tech stocks to invest in. Earlier on December 11, Lake Street raised the firm’s price target on Lantronix to $8 from $6 with a Buy rating on the shares. The firm believes that Lantronix is gaining traction as a hidden gem within the drone industry. This growth, combined with steady demand from a Tier-1 wireless provider for cell site monitoring and strength in the out-of-band management market, is expected to fuel revenue growth through next year.

On the same day, Lantronix Inc. (NASDAQ:LTRX) announced a collaboration with Trillium Engineering to integrate its Edge AI technology into gimbaled imaging systems for Uncrewed Aircraft Systems/UAS. Lantronix will provide NDAA/TAA-compliant solutions and engineering services to power Trillium’s military and commercial drone platforms.

The collaboration centers on the use of Lantronix’s Open-Q 5165RB System on Module/SOM, which is powered by Qualcomm Dragonwing processors. This hardware enables Trillium’s GD-Loc and NyxCore products to perform advanced on-device AI functions, including real-time edge processing for actionable insights and AI-driven object detection and tracking. The technology is specifically designed for Size, Weight, and Power/SWaP optimization, ensuring high performance in compact uncrewed platforms while maintaining precision targeting and low latency, even in environments where GPS or networks are restricted.

Lantronix Inc. (NASDAQ:LTRX) develops, markets, and sells industrial and enterprise IoT products and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific Japan.

While we acknowledge the potential of LTRX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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