We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Navitas Plunges 50% in a Year: Should You Buy, Sell or Hold the Stock?
Read MoreHide Full Article
Navitas Semiconductor (NVTS - Free Report) shares have plunged 49.8% in the trailing 12-month period, underperforming the Zacks Computer & Technology sector’s 27.8% return and the Zacks Electronics Semiconductors industry’s appreciation of 56.8%.
Shares of this gallium nitride (GaN) power ICs and silicon carbide (SiC) technology provider have underperformed industry peers including Marvell Technology (MRVL - Free Report) , Broadcom (AVGO - Free Report) and Credo Technology (CRDO - Free Report) over the same timeframe. Shares of Marvell, Broadcom and Credo appreciated 78%, 94.6% and 263.9%, respectively.
NVTS has been suffering from a challenging macroeconomic environment, with continued softness in some of the end markets. The company anticipates muted growth for the next couple of quarters.
Navitas currently expects revenues between $18 million and $20 million, reflecting the dynamic nature and short lead times for the mobile business as well as the customer project delays. Unfavorable product mix is expected to hurt fourth-quarter 2024 gross margin, which is expected to be 40% (+/- 50 basis points).
NVTS Stock’s Performance
Image Source: Zacks Investment Research
Navitas’ Earnings Estimate Trends Are Steady
The Zacks Consensus Estimate for 2025 loss is pegged at 21 cents per share, unchanged over the past 30 days. The figure is wider than an estimated loss of 25 cents for 2024.
NVTS’ earnings were in line with the Zacks Consensus Estimate in two of the trailing four quarters, missing in one and beating in the remaining one, the average negative surprise being 7.5%.
Navitas Semiconductor Corporation Price and Consensus
The Zacks Consensus Estimate for 2025 revenues is pegged at $88.23 million, suggesting 4.48% over 2024’s estimated figure of $84.45 million.
Cost Reduction Plan to Aid NVTS’ Profitability
Navitas’ cost-reduction plan is expected to save $2 million per quarter and streamline the enterprise with an increased focus on Al data center, EV and mobile applications. The company’s plan includes a 14% reduction in headcount.
Adjusted operating expenses are expected to decline to roughly $20.5 million in the fourth quarter of 2024.
Navitas expects to realize the full benefit of the cost savings in the first half of 2025, which is expected to help the company generate profit.
Navitas’ Prospects Ride on Expanding Portfolio
Navitas’ expanding portfolio is a major driver in the GaN and SiC market, which is currently worth more than $22 billion. Its strong portfolio of more than 300 patents (issued or pending) across GaN power circuitry, analog and digital integration, and SiC device design and fabrication is noteworthy.
NVTS is expanding power capabilities into AI data centers, EV chargers and next-generation solar microinverters through its latest GaNSafe family.
The launch of a new low-voltage GaN technology optimized for 48-volt systems is noteworthy, as it gives Navitas more content and complete solutions for AI data centers and next-generation EV platforms, as well as opening up new markets like AI-based robotics. The company believes this new 80 volt to 200 volt range creates an additional $1 billion market opportunity in the future.
Navitas also announced a new record-breaking 8.5 kilowatt AI power supply design that utilizes a combination of GaNSafe and Gen-3 Fast silicon carbide technology as well as its new lntelliWeave architecture.
NVTS’ high-voltage GaNSafe power ICs and Gen-3 Fast silicon carbon devices are currently used by more than 60 active projects with direct customers like Delta, GreatWall, Compuware and LiteON, supplying end users like Amazon Web Services, Azure and Google.
Strong Mobile Clientele Bodes Well for NVTS
In the mobile and consumer market, Navitas continues to dominate, with GaNSlim ICs featured in 26 design wins in the third quarter of 2024.
The company currently serves Samsung, which is expected to boost top-line growth beginning in the second quarter.
In the appliance and industrial pipeline, Navitas won 30 new designs in the third quarter of 2024, ranging from vacuum cleaners and LED lighting to solid-state grid-connected circuit breakers, multi-kilowatt power supplies and heat pumps.
In solar and energy, NVTS won 10 designs, including a multimillion-dollar win at Generac, which is scheduled to start production in the middle of next year.
NVTS Stock – How Should You Approach?
Navitas shares are trading below the 200-day moving average, indicating a bearish trend.
NVTS Trades Below 200-Day SMA
Image Source: Zacks Investment Research
The Navitas stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.
Given the challenging macroeconomic environment, Navitas’ prospects remain cloudy in the near term. Unfavorable revenue mix due to high mobile content is expected to keep gross margin under pressure.
Image: Bigstock
Navitas Plunges 50% in a Year: Should You Buy, Sell or Hold the Stock?
Navitas Semiconductor (NVTS - Free Report) shares have plunged 49.8% in the trailing 12-month period, underperforming the Zacks Computer & Technology sector’s 27.8% return and the Zacks Electronics Semiconductors industry’s appreciation of 56.8%.
Shares of this gallium nitride (GaN) power ICs and silicon carbide (SiC) technology provider have underperformed industry peers including Marvell Technology (MRVL - Free Report) , Broadcom (AVGO - Free Report) and Credo Technology (CRDO - Free Report) over the same timeframe. Shares of Marvell, Broadcom and Credo appreciated 78%, 94.6% and 263.9%, respectively.
NVTS has been suffering from a challenging macroeconomic environment, with continued softness in some of the end markets. The company anticipates muted growth for the next couple of quarters.
Navitas currently expects revenues between $18 million and $20 million, reflecting the dynamic nature and short lead times for the mobile business as well as the customer project delays. Unfavorable product mix is expected to hurt fourth-quarter 2024 gross margin, which is expected to be 40% (+/- 50 basis points).
NVTS Stock’s Performance
Image Source: Zacks Investment Research
Navitas’ Earnings Estimate Trends Are Steady
The Zacks Consensus Estimate for 2025 loss is pegged at 21 cents per share, unchanged over the past 30 days. The figure is wider than an estimated loss of 25 cents for 2024.
NVTS’ earnings were in line with the Zacks Consensus Estimate in two of the trailing four quarters, missing in one and beating in the remaining one, the average negative surprise being 7.5%.
Navitas Semiconductor Corporation Price and Consensus
Navitas Semiconductor Corporation price-consensus-chart | Navitas Semiconductor Corporation Quote
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The Zacks Consensus Estimate for 2025 revenues is pegged at $88.23 million, suggesting 4.48% over 2024’s estimated figure of $84.45 million.
Cost Reduction Plan to Aid NVTS’ Profitability
Navitas’ cost-reduction plan is expected to save $2 million per quarter and streamline the enterprise with an increased focus on Al data center, EV and mobile applications. The company’s plan includes a 14% reduction in headcount.
Adjusted operating expenses are expected to decline to roughly $20.5 million in the fourth quarter of 2024.
Navitas expects to realize the full benefit of the cost savings in the first half of 2025, which is expected to help the company generate profit.
Navitas’ Prospects Ride on Expanding Portfolio
Navitas’ expanding portfolio is a major driver in the GaN and SiC market, which is currently worth more than $22 billion. Its strong portfolio of more than 300 patents (issued or pending) across GaN power circuitry, analog and digital integration, and SiC device design and fabrication is noteworthy.
NVTS is expanding power capabilities into AI data centers, EV chargers and next-generation solar microinverters through its latest GaNSafe family.
The launch of a new low-voltage GaN technology optimized for 48-volt systems is noteworthy, as it gives Navitas more content and complete solutions for AI data centers and next-generation EV platforms, as well as opening up new markets like AI-based robotics. The company believes this new 80 volt to 200 volt range creates an additional $1 billion market opportunity in the future.
Navitas also announced a new record-breaking 8.5 kilowatt AI power supply design that utilizes a combination of GaNSafe and Gen-3 Fast silicon carbide technology as well as its new lntelliWeave architecture.
NVTS’ high-voltage GaNSafe power ICs and Gen-3 Fast silicon carbon devices are currently used by more than 60 active projects with direct customers like Delta, GreatWall, Compuware and LiteON, supplying end users like Amazon Web Services, Azure and Google.
Strong Mobile Clientele Bodes Well for NVTS
In the mobile and consumer market, Navitas continues to dominate, with GaNSlim ICs featured in 26 design wins in the third quarter of 2024.
The company currently serves Samsung, which is expected to boost top-line growth beginning in the second quarter.
In the appliance and industrial pipeline, Navitas won 30 new designs in the third quarter of 2024, ranging from vacuum cleaners and LED lighting to solid-state grid-connected circuit breakers, multi-kilowatt power supplies and heat pumps.
In solar and energy, NVTS won 10 designs, including a multimillion-dollar win at Generac, which is scheduled to start production in the middle of next year.
NVTS Stock – How Should You Approach?
Navitas shares are trading below the 200-day moving average, indicating a bearish trend.
NVTS Trades Below 200-Day SMA
Image Source: Zacks Investment Research
The Navitas stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.
Given the challenging macroeconomic environment, Navitas’ prospects remain cloudy in the near term. Unfavorable revenue mix due to high mobile content is expected to keep gross margin under pressure.
Navitas currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a favorable time to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.