Impinj, Inc. (PI): A Bull Case Theory

We came across a bullish thesis on Impinj, Inc. (PI) on Substack by Industrial Tech Stock Analyst. In this article, we will summarize the bulls’ thesis on PI. Impinj, Inc. (PI)'s share was trading at $77.07 as of April 23^rd. PI’s trailing and forward P/E were 55.45 and 56.82 respectively according to Yahoo Finance.

Impinj (PI) delivered a notable upside surprise in Q1 2025, reinforcing its position as a key player in the secularly expanding RAIN RFID market. Despite a modest 3% year-over-year revenue decline to $74.3M, results topped both company guidance ($70–73M) and consensus ($71.7M), driven by rising channel inventories as customers moved stock to lower-tariff regions. More impressively, tight cost management led to an adjusted EBITDA of $6.5M, far surpassing the $1.1–2.6M guidance range. While Q2 revenue guidance of $91–96M aligned with expectations, Impinj again surprised on the bottom line, forecasting non-GAAP EPS of $0.68–0.76 versus a $0.57 consensus. This strong earnings outlook pushed shares up 15% in after-hours trading.

These results not only underscore management's operational discipline but also point to improving stabilization in partner inventories, indicating the inventory correction cycle may be nearing its end. With core segments like retail, apparel, and logistics seeing robust demand—and newer verticals like grocery beginning to adopt RAIN RFID—the long-term growth thesis remains firmly intact. Management expressed confidence in a reacceleration to 20%+ annual revenue growth by the second half of 2025, assuming macro conditions hold. Critically, the anticipated revenue rebound is expected to drive meaningful operating leverage, with adjusted EBITDA projected to grow at a 40%+ rate in coming years. This earnings power, paired with a clear leadership position in a rapidly growing market, makes Impinj an attractive investment.

Impinj, Inc. (PI) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held PI at the end of the fourth quarter which was 22 in the previous quarter. While we acknowledge the risk and potential of PI 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 PI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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