Core Viewpoint - Nova Ltd. (NVMI) has experienced a significant decline in share price, losing 27.9% over the past three months, which is notably worse than the performance of the Zacks Electronics – Semiconductors industry and broader market indices [1][2] Financial Performance - NVMI's market share has increased in the thin-film and OCD metrology segment, making it the second-largest vendor in this area, driven by strong demand in semiconductor manufacturing, particularly for AI applications [6] - The company achieved record revenues in Q1 2025, particularly from its gate-all-around and advanced packaging technologies, with notable sales from the PRISM platform [7] - NVMI's earnings estimate for 2025 is projected at $7.83 per share, reflecting a 30.07% year-over-year growth, with revenues expected to reach $863.7 million, indicating a 28.45% increase [9] Strategic Positioning - Despite new tariffs, NVMI expects only a minor reduction in gross margins by 30 to 50 basis points in Q2 2025, and there has been no significant impact on revenue growth [3][4] - The company's global manufacturing footprint, with production facilities in the U.S., Germany, and Israel, allows for quick adaptation to changing trade rules, minimizing tariff exposure [5] - NVMI is actively exploring pricing and operational changes to mitigate cost pressures on service parts, maintaining resilience in its operations [5] Growth Potential - The integration of Sentronics is expected to enhance NVMI's role in AI-driven semiconductor manufacturing, contributing to consistent quarterly growth and rising demand across key technologies [11] - The company has a Zacks Rank 2 (Buy) and a Growth Score of A, indicating a strong investment opportunity [12]