Is Enovix (ENVX) Using Fab 2 Expansion And Buyback To Redefine Its Battery Edge?

• In December 2025, Enovix highlighted the expansion of its Fab 2 facility in Malaysia to four production lines targeting up to 10 million units annually, alongside Board approval of a US$60 million 2025 share buyback and broad smartphone OEM sampling activity for its batteries.
• Beyond the immediate operational update, the combination of high-volume capacity build-out, interest from seven of the top eight smartphone OEMs, and an authorized buyback suggests management is aligning manufacturing scale, commercial traction, and capital allocation around its emerging role in next-generation mobile batteries.
• We’ll now explore how the Fab 2 expansion in Malaysia reshapes Enovix’s investment narrative and its long-term potential in high-growth markets.

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Enovix Investment Narrative Recap

To own Enovix, you have to believe its silicon battery technology can win meaningful share in smartphones and other devices before its cash burn and competitors catch up. The Fab 2 expansion and broad OEM sampling directly support the near term smartphone qualification catalyst, but they do not remove the risk that high volume ramp or customer timelines slip, which could keep losses elevated and prolong questions around when the business can support its growing manufacturing base.

Among recent announcements, the authorization of a US$60 million share repurchase program in 2025 stands out alongside the Fab 2 build out, because it sits against continued non GAAP EBITDA and EPS losses and a capital intensive manufacturing ramp. For investors watching the Malaysia capacity scale up and smartphone sampling progress, that combination puts an even brighter spotlight on whether volumes and pricing can eventually cover the higher fixed cost base without needing fresh equity capital.

Yet while Fab 2 and OEM interest look encouraging, investors should also be aware of the risk that large scale smartphone qualifications slip and...

Read the full narrative on Enovix (it's free!)

Enovix's narrative projects $460.3 million revenue and $48.3 million earnings by 2028.

Uncover how Enovix's forecasts yield a $26.90 fair value, a 260% upside to its current price.

Exploring Other Perspectives

Eight fair value estimates from the Simply Wall St Community span a wide range, from US$0.81 to US$35.11 per share. Against that spread of opinions, the key question remains whether Fab 2’s high volume smartphone ambitions and qualification timing can translate into the kind of revenue scale that justifies such different views on Enovix’s future performance.

Explore 8 other fair value estimates on Enovix - why the stock might be worth less than half the current price!

Build Your Own Enovix Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Enovix research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Enovix research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Enovix's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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