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Here are 1-3 brief analogies to describe NVE Corporation (NVEC):

• The Analog Devices of spintronic sensors and isolators. (Analog Devices is a well-known leader in high-performance analog and mixed-signal semiconductors, and NVE specializes in advanced spintronic versions of these components.)
• Wolfspeed for magnetic sensors and isolators. (Wolfspeed is known for its leadership in next-generation silicon carbide power devices that replace traditional silicon, similar to how NVE leverages advanced spintronics to create superior magnetic sensors and data isolators.)

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• GMR/TMR Magnetic Sensors: These integrated circuits detect magnetic fields for precise position, speed, and current sensing across industrial, medical, and consumer applications.
• GMR Digital Isolators: These devices provide galvanic isolation for data lines, protecting sensitive electronics from high voltage, ground loops, and noise in various industrial and medical equipment.

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NVE Corporation (NVEC) designs, manufactures, and markets high-performance spintronic products, including sensors and isolators. The company primarily sells its products to other companies (B2B), specifically Original Equipment Manufacturers (OEMs) and system integrators.

NVE's public filings, such as its annual 10-K report, indicate that its largest customers account for a significant portion of its net sales (e.g., its largest customer accounted for 14% of net sales, and its second largest accounted for 11% in fiscal year 2023). However, NVE Corporation does not publicly disclose the names of its specific major customers in these filings. Therefore, it is not possible to list the names of individual customer companies and their symbols.

Instead, NVE's components are integrated into products serving a broad range of industries, which represent the ultimate markets for its direct customers. These industries indicate the types of companies that are likely to be NVE's major customers:

• Industrial Automation and Control: Companies manufacturing factory automation equipment, robotic systems, motor controls, and process control systems that require precise sensing and electrical isolation for safety and performance.
• Medical Devices: Manufacturers of medical equipment such as patient monitoring systems, diagnostic instruments, and implantable devices where high-performance sensors and isolators are critical for accuracy, reliability, and patient safety.
• IoT and High-Tech Electronics: Companies developing advanced electronic systems, Internet of Things (IoT) devices, and data storage solutions that benefit from NVE's unique spintronic technology for sensing, data transmission, and signal processing in demanding applications.

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Daniel A. Baker, Chief Executive Officer, President and Director

Daniel A. Baker has served as NVE's President and CEO since 2001 and is also a director of the company. He possesses over 45 years of executive and engineering experience. Prior to joining NVE, he was the President and CEO of Printware, Inc., a publicly traded company specializing in high-speed imaging systems, from 1993 to 2001. At Printware, he also held positions as Vice President of Sales, Marketing, and Product Development, and served as a director from 1993 to 2000. His previous experience includes serving as Director of Electronic Development for Minntech Corporation (now Cantel Medical Corp.) and Director of Engineering for Percom Data Corporation. Dr. Baker holds a Ph.D. and an MBA from the University of Minnesota, and a B.S. in Biomedical Engineering from Case Western Reserve University. Printware underwent an initial public offering (IPO) in 1996 during his tenure, but he was replaced as President and CEO in January 2001 after a group of dissident shareholders took control, and NVE hired him shortly thereafter. Printware later liquidated.

Curt A. Reynders, Chief Financial Officer, Treasurer, and Secretary

Curt A. Reynders serves as the Chief Financial Officer, Treasurer, and Secretary of NVE Corporation, a role he has held since 2006. Before his promotion to CFO, he was the company's controller from 2001. Mr. Reynders' career before NVE includes various accounting, auditing, and accounting management positions at public accounting and industry firms. He earned a B.S. in Accounting and Economics from Morningside College.

Peter G. Eames, Vice President of Advanced Technology

Peter G. Eames is the Vice President of Advanced Technology at NVE Corporation, where he has been for over 20 years. He is involved in the company's research and development efforts and discusses NVE's spintronic technology, including the design and manufacturing of miniature sensors and custom equipment for medical devices. He has also published research.

Daniel Nelson, Principal Financial Officer and Controller

Daniel Nelson holds the position of Principal Financial Officer and Controller at NVE Corporation. He participates in the company's earnings calls.

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The key risks to NVE Corporation's business include:

1. Customer Concentration and Intense Competition: NVE Corporation is a niche player with relatively small revenue, making it highly vulnerable to customer concentration. A significant portion of its sales relies on a small group of major customers, and the loss of even one key account could materially harm the business. The company also faces intense competition from larger entities with significantly greater financial, technical, and marketing resources, leading to increased competition and pricing pressure.
2. Product Obsolescence and the Need for Continuous Innovation: As a technology-driven company specializing in spintronics, NVE Corporation is exposed to the risk of its proprietary products and technologies becoming obsolete. This risk stems from rapid advancements by competitors or broader technological shifts in the industry. The company must continuously invest in research and development (R&D) to maintain its competitive edge, and there is no guarantee that these investments will consistently translate into sustained revenue growth.
3. Revenue Declines and Market Volatility: NVE Corporation has experienced recent declines in revenue, particularly in its contract research and development segment. These declines, coupled with cyclical weakness in chip demand and inventory build-ups in the semiconductor supply chain, have impacted the company's profitability and gross margins. Such market volatility and revenue contraction raise concerns about the sustainability of future performance and long-term investments.

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NVE Corporation (NVEC) operates in the addressable markets for magnetoresistive random access memory (MRAM), giant magnetoresistance (GMR) sensors, and digital isolators.

• Magnetoresistive Random Access Memory (MRAM): The global MRAM market is estimated to be approximately USD 3.26 billion in 2025 and is projected to reach between USD 36.49 billion by 2030 and USD 84.77 billion by 2034, with a compound annual growth rate (CAGR) ranging from 34.99% to 62.12% during those periods. The North American MRAM market held over 48% of the global market share in 2024, with the U.S. market specifically valued at USD 1.42 billion in 2024 and expected to reach around USD 28.98 billion by 2034.
• Giant Magnetoresistance (GMR) Sensors: The global GMR sensors market was valued at approximately USD 0.24 billion in 2024 and is projected to grow to between USD 0.46 billion by 2033 and USD 0.53 billion by 2035, at a CAGR of 7.4% during those periods. The Asia-Pacific region holds the largest share of this market at 45%, followed by North America at 28%.
• Digital Isolators: The global digital isolator market was estimated at over USD 2.33 billion in 2025 and is projected to reach approximately USD 4.76 billion by 2035, demonstrating a CAGR of about 7.4% between 2026 and 2035. The Asia Pacific region is the largest and fastest-growing market for digital isolators, expected to hold over 33% of the market share by 2035.

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Here are 3-5 expected drivers of future revenue growth for NVE Corporation (NVEC) over the next 2-3 years:

1. Recovery in the Semiconductor Industry and Customer Demand: NVE has experienced impacts from a semiconductor industry downturn and high inventory levels in recent fiscal quarters. However, forecasts indicate the industry is on a path to recovery in calendar year 2024 and strong growth in 2025, which is expected to stabilize and improve product sales for NVE.
2. Launch and Adoption of New Wafer-Level Chip Scale Sensors: NVE is actively introducing new wafer-level chip scale sensors that offer enhanced capabilities such as higher accuracy, smaller sizes, and lower power consumption. These ultraminiature devices are being promoted at industry trade shows and are anticipated to generate new business from recent product introductions.
3. Expansion into New High-Value Markets: The company is strategically targeting new markets with its innovative products, particularly the recently launched omnidirectional magnetic sensors and wafer-level chip scale sensors. These are designed to cater to industrial automation, medical device, robotics, IoT (Internet of Things), and electric vehicle (EV) sectors, expanding NVE's competitive positioning and creating new revenue verticals.
4. Growth in Contract Research and Development (R&D) Revenue: NVE has demonstrated an increase in contract R&D revenue in several recent quarters, including a 94% increase in Q3 2024, a 28% increase in Q1 2025, and a 558% upsurge in Q4 2025. This suggests a growing demand for NVE's specialized expertise in customer-funded projects, which can lead to further product commercialization and sales.
5. Sequential Growth in Defense Sales: Despite previous volatility, NVE's management expects its defense business to grow quarter-over-quarter sequentially in the coming quarters and to return to more historical levels in the next fiscal year (Fiscal 2026). This anticipated rebound in a key sector is a significant driver for future revenue.

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Share Repurchases

• NVE Corporation had a stock repurchase program with $30.0 million authorized as of March 31, 2022.
• The company did not repurchase any shares in fiscal years 2025 or 2024 (ended March 31, 2025, and March 31, 2024, respectively).
• Actual share repurchases amounted to approximately $78,150 in fiscal year 2023 (ended March 31, 2023) and $163,530 in fiscal year 2022 (ended March 31, 2022).

Share Issuance

• NVE Corporation's outstanding shares increased by 3,490, from 4,833,676 as of March 31, 2024, to 4,837,166 as of March 31, 2025.
• Additional paid-in capital increased by $266,294 from March 31, 2024, to March 31, 2025, reflecting the dollar value of equity transactions, which may include stock option exercises.

Capital Expenditures

• NVE Corporation plans $4 million to $5 million in capital investments over fiscal years 2025 and 2026.
• Capital expenditures were approximately $917,000 for the first quarter of fiscal year 2025 (ended June 30, 2024).
• Annual capital expenditures for recent fiscal years were approximately $1.257 million in fiscal year 2025 (ended March 31, 2025), $0.017 million in fiscal year 2024, $0.936 million in fiscal year 2023, and $0.485 million in fiscal year 2022. These expenditures are primarily focused on increasing capacity and capabilities, including in-house wafer-level chip-scale package manufacturing, to produce smaller, higher-performance parts and enhance self-sufficiency. The company has also completed the installation of new manufacturing equipment, expanding its production area.