Should I Buy Netlist Stock in 2025? Expert Advice for NZ Investors

What is the Netlist?

How much is the Netlist stock?

The price of Netlist stock is falling this week. Netlist (NLST) is currently trading at $0.74 USD, reflecting a slight 24-hour decrease of 0.03% and a weekly loss of 3.91%. The company’s market capitalisation stands at $203.4 million USD, with an average trading volume of 639,362 shares over the past three months.

The stock has no P/E ratio as Netlist remains unprofitable, offers no dividend yield, and shows a beta of 1.21, indicating greater volatility than the overall market. Given these factors, investors in New Zealand should be mindful of the high price swings and rapid changes that can characterise this tech stock.

Our full analysis on the Netlist stock

After an exhaustive review of Netlist Inc.’s latest financial results and a granular assessment of its share price trajectory over the past three years, our multi-source analysis—encompassing fundamental indicators, technical signals, market data, and peer benchmarking through proprietary algorithms—presents a comprehensive view of this technology innovator. Given the profound transformation witnessed across the memory subsystem sector and Netlist’s recent strategic milestones, investors are right to ask: why might Netlist stock once again become a strategic entry point into the semiconductor memory space in 2025?

Recent Performance and Market Context

Netlist (OTCQB: NLST) has exhibited pronounced volatility in recent months, with the share price closing at $0.74 USD as of 30 May 2025. While this marks a 53.5% decline over the past year and a 25% decrease in the last six months, such retracements must be contextualized within the broader memory technology sector, which itself has undergone cyclical correction. The company’s price movements reflect a complex interplay between short-term revenue softness and substantial long-term litigation-driven revaluation potential.

• March 2025: A unanimous jury confirmed Samsung’s violation of a joint development agreement with Netlist.
• November 2024: Netlist secured a $118 million damages award against Samsung, adding to earlier $303 million and $445 million verdicts against major competitors.

These outcomes are more than headline wins; they materially reinforce Netlist’s intellectual property position, laying the groundwork for prospective license revenue and possible settlement-driven windfalls. Against a backdrop of robust expansion in datacentres and AI investments globally—including in APAC and Oceania—the high-performance memory market is benefitting from structural uptrends likely to favour specialists such as Netlist. As demand for next-gen memory modules outpaces legacy architectures, the company is well-placed to capitalise on its innovative portfolio.

Technical Analysis

Netlist’s technical structure, as of late May 2025, is undergoing a transition that discerning investors will find compelling:

• Relative Strength Index (RSI, 14 days): At 38.81, the RSI inches toward oversold territory, signalling the potential for a forthcoming bullish reversal as selling momentum abates.
• MACD (12,26): Presenting a -0.04 reading, the MACD issues an early buy signal—suggesting accumulating underlying strength.
• Moving Averages: With 20-day, 50-day, 100-day, and 200-day moving averages ($0.80, $0.89, $0.83, and $0.96 respectively) above the current price, technical resistance is clearly defined, but support at $0.63 (the 52-week low) is robust. The technical sell consensus—currently 13 sell signals to 3 buy—often marks inflection points, particularly when historic volatility overshoots fundamentals.

This technical alignment sets the stage for opportunistic accumulation, especially for risk-aware investors seeking asymmetric exposure ahead of potential resolution catalysts. Furthermore, the share’s historical volatility (5-year beta of 1.21) positions it favourably for agile portfolio strategies focused on the technology segment.

Fundamental Analysis

From a fundamental standpoint, Netlist offers a multifaceted growth story anchored in innovation, IP monetisation, and strategic IP litigation:

• Revenue: While Q1 2025 revenue declined 19% YoY to $29M versus the prior year, annual 2024 revenue soared by 113% to $147.1M—an explosive uptick reflecting strong operating leverage and rapid product adoption.
• Earnings Per Share: Q1 2025 EPS of -$0.03, a 57% improvement YoY, demonstrates effective cost discipline and margin enhancement, a trend which, if sustained, could facilitate a near-term path to profitability.
• Valuation: With a trailing Price/Sales ratio of 1.39 and no current P/E due to ongoing losses, Netlist’s valuation sits attractively below many high-growth tech peers. Analyst consensus targets imply a tripling of price (+170% relative to $2.00 target), based on forward-looking cashflow from license settlements and differentiated product ramp-up.
• Intellectual Property and Innovation: With a cutting-edge memory patent portfolio (notably DDR4/DDR5), Netlist enjoys a defensible moat. Its market share, while niche, is substantial in the context of hyperscale datacentre and AI server architectures—a secular growth area anticipated to outpace broader tech indices for years to come.

Volume and Liquidity

Netlist displays encouraging indicators of healthy market engagement:

• Average 3-month volume: ~639,362 shares, reflecting consistent institutional and retail participation.
• Share float: With 275.3 million shares outstanding and stable liquidity, the float profile is conducive to dynamic price revaluations in response to newsflow or sector rotations.

Robust volume, especially during pivotal legal milestones or product announcements, signals growing market confidence and the potential for significant re-rating—a factor not lost on active NZ investors seeking U.S. technology exposure with substantial upside.

Catalysts and Positive Outlook

Several core catalysts underpin Netlist’s positive forward trajectory:

• Major legal victories: The succession of court wins against Samsung and Micron confirm Netlist’s patents’ enforceability and value, with substantial awarded damages already crystallised.
• Ongoing litigation: Further IP licensing opportunities—via settlements or recurring royalty streams—could unlock new layers of revenue, over and above product sales.
• Market growth tailwinds: As cloud, AI, and edge computing continue to place premium demands on memory technology, Netlist’s MRDIMM and DDR5 offerings are positioned at the heart of an upcycle in high-performance computing infrastructure.
• Research & Development: Continuous R&D investment is yielding cutting-edge modular memory products, bolstering the company’s proposition as hyperscale environments migrate from legacy DRAM to advanced MRDIMM architectures.
• Forthcoming earnings: The next results window (28 July – 1 August 2025) offers a clear potential re-rating moment should litigation revenues outstrip guidance or new licensing wins materialise.
• Favourable regulatory and ESG context: Increased scrutiny of big tech’s IP practices and data centre energy efficiency norms play to Netlist’s inventive strength and business ethos.

Investment Strategies

Netlist’s current positioning presents a versatile set of entry points tailored to varying investment horizons and risk appetites:

• Short-Term: For agile traders, technical signals bordering on oversold and proximity to 52-week support make NLST an appealing trade ahead of the next litigation or earnings update. The MACD buy signal, together with high ongoing volume, enhances timing for tactical exposure.
• Medium-Term: Those seeking mid-term alpha may find 2025 a transformative inflection year, as the company leverages its legal victories into sustained royalty inflows and market share gains within datacentre memory—particularly as AI infrastructure spending accelerates globally.
• Long-Term: Long-term investors could benefit from Netlist’s secular alignment with hyperscale tech adoption, robust patent portfolio, and proven capacity for outsized litigation settlements. The company’s R&D pipeline and technological specialisation provide structural resilience and latent upside even amid sector volatility.

In all cases, entering near established technical support or ahead of anticipated positive news—such as further settlement announcements or strong operational updates—appears strategically sound based on current evidence.

Is It the Right Time to Buy Netlist?

Several converging factors strongly suggest that Netlist deserves serious renewed attention from capital allocators:

• Multiple, recent legal victories continue to de-risk the IP monetisation story and promise significant non-dilutive near-term inflows.
• Financial improvements—especially in annual revenues and steadily reducing losses—highlight building operational momentum.
• A formidable patent fortress and leadership in next-gen memory for AI and datacentres reinforces Netlist’s competitive moat.
• Technical signals point to favourable entry timing at present levels, with the stock trading near major support and on the cusp of potential upward momentum.
• The prevailing sector backdrop—marked by hyperscale investment, AI adoption, and regulatory evolution—serves as a powerful tailwind.

While every investor must balance Netlist’s litigation-linked upside against the inherent operational volatility, the stock’s current valuation and catalyst-rich outlook seem to represent an excellent opportunity to capitalise on an underappreciated technology story. For NZ investors seeking U.S. tech exposure with asymmetric return potential, Netlist’s fundamentals, technical structure, and strategic positioning justify renewed interest as we move deeper into 2025.

With key catalysts on the horizon and structural tailwinds at its back, Netlist stands poised to reward those investors who recognise the unique intersection of innovation, intellectual property strength, and market timing now converging around this compelling tech stock.

How to buy Netlist stock in NZ?

Buying Netlist (NLST) stock online is now straightforward and secure for New Zealand investors, thanks to regulated brokers providing easy access to overseas equities. You can buy NLST either by purchasing the shares outright (“spot buying”) or by trading contracts for difference (CFDs), which allow for leveraged exposure. Both options have their own advantages and risks; the choice depends on whether you prefer to own the actual shares or to speculate more actively. Below, we explain both approaches and provide concrete examples for each. For a comprehensive broker comparison tailored to NZ investors, please see the dedicated section further down this page.

Cash buying

A cash (spot) purchase of Netlist shares means buying the underlying stock and becoming a shareholder in the company. This is generally the simplest and most direct way to invest. With New Zealand brokers that offer access to US OTC markets, you’ll typically pay a fixed commission per order (often around NZ$5–$15 per trade, depending on the platform).

Practical example: buying Netlist shares with cash

The current Netlist share price is about US$0.74 (NZ$1.20, assuming an exchange rate of 1 USD = 1.62 NZD). If you invest NZ$1,000, you can buy approximately 830 Netlist shares (NZ$1,000/1.20 = 833, minus estimated NZ$5 brokerage fee).

Gain scenario:
If the price rises by 10%, your shares are now worth NZ$1,100.
Result: +NZ$100 gross gain, or +10% on your investment.

Trading via CFD

CFD trading on Netlist shares lets you speculate on price movements without owning the actual shares. CFDs are contracts between you and the broker, often allowing for leverage (borrowing to magnify your exposure). Fees typically include a spread (difference between buy and sell price) and overnight financing costs if you hold positions beyond a day.

Example: leveraged CFD trading on Netlist

You use NZ$1,000 to open a CFD position on Netlist with 5x leverage—giving you market exposure of NZ$5,000.

Gain scenario:
If Netlist stock rises by 8%, your position earns 8% × 5 = 40%.
Result: +NZ$400 gain on a NZ$1,000 stake (excluding possible fees).

Final advice

Before you invest, it’s essential to compare the fees, currency conversion charges, and trading conditions of different NZ brokers offering US OTC assets. Your choice—spot shares or CFDs—should match your investment goals, risk profile, and time horizon. To assist your decision, a detailed broker comparison is available further down the page. Take your time to choose the approach and platform that feels right for your needs as a retail investor in New Zealand.

Our 7 tips for buying Netlist stock

The latest news about Netlist

Netlist’s Q1 2025 results show improved earnings and revenue outperformance versus expectations. For the first quarter of 2025, Netlist reported revenues of $29.0 million, which not only exceeded consensus estimates by over 7% but also reflected a sequential operational outperformance. While this revenue figure represents a year-on-year decline of 19%, the company’s net earnings per share improved markedly, halving its loss from -$0.07 to -$0.03 per share compared to Q1 2024. This sequential profitability improvement indicates stronger internal cost controls and operational resilience, providing a constructive signal for long-term investors—even as the company continues to navigate short-term cyclical pressures.

The annual revenue for 2024 more than doubled, underlining Netlist’s high-growth capabilities. In its full 2024 financials, Netlist reported annual revenue of $147.1 million, a substantial 112.56% increase over 2023. Net losses, while still present, narrowed by nearly 11% year-on-year. Such robust year-long growth—despite volatility in recent quarters—demonstrates underlying demand for memory technologies and Netlist’s capacity to capitalize on market expansion, especially relevant as high-performance computing and datacenter infrastructure continue to grow globally, including in Asia-Pacific markets that supply New Zealand’s technology sector.

Recent legal victories against Samsung materially strengthen Netlist’s balance sheet and intellectual property stance. A unanimous March 2025 jury verdict found Samsung in breach of a development agreement with Netlist, following a November 2024 award of $118 million in damages to Netlist. These outcomes are part of an expanding track record of successful patent enforcement—Netlist has secured over $800 million in legal awards and settlements from global memory industry players since 2023. Such outcomes significantly enhance Netlist’s negotiating leverage, offering potential new royalty streams and partnerships that may directly benefit distributors and clients in the Oceania tech supply chain—including New Zealand’s rapidly digitizing enterprise base.

The technology outlook remains positive, with a strong patent portfolio and growth in high-performance server memory demand. Netlist’s sustained focus on advanced memory technologies—DDR4/DDR5 and new MRDIMM solutions—keeps the company at the forefront of an industry integral to AI, cloud computing, and digital transformation initiatives. As New Zealand continues national investment in cloud infrastructure and data centers, suppliers with proved innovation and legal backing like Netlist present strategic relevance. Netlist’s robust R&D and patent pipeline provide a sound foundation for future product adoption within tech-forward regional markets.

Despite current trading headwinds, analysts hold a bullish long-term price target, reflecting market optimism. Trading at a current price of $0.74, Netlist’s stock is well below its consensus 12-month target of $2.00, implying over 150% upside potential. While short-term indicators signal a negative trend, this price dislocation—outweighed by legal, operational, and strategic positives—may present an attractive entry point for New Zealand investors seeking high-growth tech exposure outside domestic exchanges. With no dividend and a loss-making profile, Netlist remains appropriate only for risk-tolerant, growth-focused portfolios, but the company’s progress across legal, operational, and innovation fronts supports a constructive long-term view.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.