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What Does Wall Street Think About PDF Solutions (PDFS)

Fri, Sep 5, 2025, 10:06 AM 2 min read

PDF Solutions, Inc. (NASDAQ:PDFS) is one of the Best Small Cap Tech Stocks To Buy Right Now. Wall Street is cautious on the stock as the share price has fallen more than 12.5% since the company announced its FQ2 2025 results on August 7.

PDF Solutions, Inc. (NASDAQ:PDFS) posted results that topped Wall Street estimates. The company posted a quarterly revenue of $51.73 million, up 24.16% year-over-year and ahead of estimates by $148,250. The EPS of $0.19 also stayed in line with the consensus. Management noted that it achieved record bookings for the Sapience Manufacturing Hub product family and the newly acquired secureWISE offering. Taking confidence from this record quarterly performance, management reaffirmed the guidance and is expecting an annual revenue growth rate between 21% and 23%.

However, despite this performance, the share price has fallen more than 12.5% and analysts are expressing caution. On August 8, D.A. Davidson analyst Clark Wright initiated a Hold rating on PDF Solutions, Inc. (NASDAQ:PDFS) with a price target of $24. More recently, on August 13, Northland lowered the firm’s price target on the stock to $29 from $36, while keeping an Overweight rating.

PDF Solutions, Inc. (NASDAQ:PDFS) provides comprehensive data solutions for the semiconductor industry. It helps companies collect, manage, and analyze manufacturing data to improve product yield, quality, and efficiency.

While we acknowledge the potential of PDFS 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.