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After a 246% Rally, Is Navitas Semiconductor a Buy or a Hold in 2025?
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Key Takeaways
NVTS stock jumped 246% in three months, far outpacing sector benchmarks and semiconductor peers.
Investor optimism is driven by GaN and SiC innovations, EV wins and AI data center design traction.
Despite growth prospects, NVTS faces soft revenues, margin pressure and trades at 15.5x forward P/S.
Navitas Semiconductor (NVTS - Free Report) has delivered a standout performance in 2025, with its stock skyrocketing 246% over the past three months, far outpacing the broader Electronics - Semiconductors industry, the Computer and Technology sector and benchmark indices like the S&P 500. The rally has also outpaced the broader PHLX Semiconductor Index’s (SOX) 58.3% growth.
While revenue growth remains modest, investor enthusiasm is fueled by Navitas’ expanding customer pipeline, new design wins and growing traction across EVs, AI data centers and renewable energy. The company's innovations in gallium nitride (GaN) and silicon carbide (SiC) are positioning it as a key player in next-gen power electronics.
Three-Month Share Comparison
Image Source: Zacks Investment Research
But with shares already up triple digits, is it time for investors to buy NVTS stock, or has the easy money been made? Let’s delve deeper.
Industry-First Bidirectional GaN IC Launch
Navitas launched the industry’s first production-ready bidirectional GaN integrated circuit (IC) in the first quarter of 2025, enabling single-stage power conversion. This disrupts traditional two-stage architectures used in over 70% of power electronics, reducing cost, size and power loss by 30% or more. The innovation reveals high-efficiency applications across solar microinverters, electric vehicle (EV) onboard chargers, energy storage and motor control systems, with customer ramp-ups expected in late 2025 and 2026.
GaNSafe Automotive Qualification and EV Design Wins
Navitas’ GaNSafe platform has achieved AEC-Q101 automotive-grade qualification, a milestone enabling its use in EVs. This led to a landmark design win with Changan Auto, making it the first GaN platform adopted in a mainstream EV. With more than 40 EV design wins across China, Europe, the United States and Korea and a rapidly expanding $900 million EV pipeline, Navitas is poised to scale in high-voltage, high-efficiency onboard and roadside chargers beginning in 2026.
AI Data Center Power Platform Expansion
Navitas is also expanding in AI-powered data centers, a rapidly growing market. The company has secured over 40 design wins at leading Asian ODMs targeting Tier 1 hyperscalers like Google, Amazon, Facebook and Alibaba. It announced a 12-kilowatt power platform, an industry first, that enables high-performance Blackwell and Rubin-class AI servers to reach up to 500kW per rack. This expands on earlier platforms (2.7kW-8.5kW) and positions Navitas as a critical enabler of next-generation compute infrastructure.
Strengthening Financial Position
Even amid softness in core markets, Navitas has managed to cut costs, lowering operating expenses from $19.9 million in the fourth quarter of 2024 to $17.2 million in the first quarter of 2025, with a target of further reduction to $15.5 million in the upcoming quarters. The company maintains a debt-free balance sheet, $75 million in cash and continues to invest in high-growth areas. Combining its cost reduction and efficiency improvement initiatives along with a strong cash position, clean balance sheet and growth outlook, the company expects to reach positive EBITDA in 2026.
Snags Remain
Despite its strong innovation pipeline and long-term growth prospects, Navitas Semiconductor faces several near-term headwinds. The company continues to report muted revenue growth and guidance indicating ongoing softness in core markets like EVs, solar and industrials due to inventory corrections and weak demand. Gross margins in the first quarter also declined sequentially, impacted by a less favorable product mix. Additionally, operating losses persist and management does not expect profitability before 2026. Exposure to tariff risks, particularly in its SiC business, adds to the uncertainty.
Meanwhile, established rivals like Wolfspeed (WOLF - Free Report) and Power Integrations (POWI - Free Report) continue to invest aggressively in wide bandgap technologies, supported by stronger revenue bases and deeper customer relationships. Until design wins convert into revenues, NVTS remains vulnerable to cyclical downturns, margin pressure and increasing competitive intensity in the GaN and SiC power electronics space.
Estimate for Navitas' Earnings Trends Down
The Zacks Consensus Estimate for 2025 loss is pegged at 19 cents per share, moving south over the past 90 days.
NVTS’ earnings were in line with the Zacks Consensus Estimate in each of the trailing four quarters.
Image Source: Zacks Investment Research
Expensive Valuation
NVTS stock trades at a forward 12-month price-to-sales (P/S) of 15.5X, significantly higher than the industry average of 8.6X. This compares to WOLF’s 12-month P/S of 0.47X and POWI’s 6.34X.
Image Source: Zacks Investment Research
Final Take on NVTS
Given near-term headwinds, slowing earnings momentum and a stretched valuation, investors may want to refrain from chasing Navitas Semiconductor stock right now. Despite a strong innovation roadmap, the company trades at a steep forward P/S of 15.5x, well above the industry average, while 2025 earnings estimates have been revised downward. With a Zacks Rank #3 (Hold) and no near-term catalyst in sight, NVTS lags peers like Wolfspeed and Power Integrations in scale and profitability. Until its design wins translate into sustained revenues and earnings growth, the stock may be better watched than bought.
Image: Bigstock
After a 246% Rally, Is Navitas Semiconductor a Buy or a Hold in 2025?
Key Takeaways
Navitas Semiconductor (NVTS - Free Report) has delivered a standout performance in 2025, with its stock skyrocketing 246% over the past three months, far outpacing the broader Electronics - Semiconductors industry, the Computer and Technology sector and benchmark indices like the S&P 500. The rally has also outpaced the broader PHLX Semiconductor Index’s (SOX) 58.3% growth.
While revenue growth remains modest, investor enthusiasm is fueled by Navitas’ expanding customer pipeline, new design wins and growing traction across EVs, AI data centers and renewable energy. The company's innovations in gallium nitride (GaN) and silicon carbide (SiC) are positioning it as a key player in next-gen power electronics.
Three-Month Share Comparison
Image Source: Zacks Investment Research
But with shares already up triple digits, is it time for investors to buy NVTS stock, or has the easy money been made? Let’s delve deeper.
Industry-First Bidirectional GaN IC Launch
Navitas launched the industry’s first production-ready bidirectional GaN integrated circuit (IC) in the first quarter of 2025, enabling single-stage power conversion. This disrupts traditional two-stage architectures used in over 70% of power electronics, reducing cost, size and power loss by 30% or more. The innovation reveals high-efficiency applications across solar microinverters, electric vehicle (EV) onboard chargers, energy storage and motor control systems, with customer ramp-ups expected in late 2025 and 2026.
GaNSafe Automotive Qualification and EV Design Wins
Navitas’ GaNSafe platform has achieved AEC-Q101 automotive-grade qualification, a milestone enabling its use in EVs. This led to a landmark design win with Changan Auto, making it the first GaN platform adopted in a mainstream EV. With more than 40 EV design wins across China, Europe, the United States and Korea and a rapidly expanding $900 million EV pipeline, Navitas is poised to scale in high-voltage, high-efficiency onboard and roadside chargers beginning in 2026.
AI Data Center Power Platform Expansion
Navitas is also expanding in AI-powered data centers, a rapidly growing market. The company has secured over 40 design wins at leading Asian ODMs targeting Tier 1 hyperscalers like Google, Amazon, Facebook and Alibaba. It announced a 12-kilowatt power platform, an industry first, that enables high-performance Blackwell and Rubin-class AI servers to reach up to 500kW per rack. This expands on earlier platforms (2.7kW-8.5kW) and positions Navitas as a critical enabler of next-generation compute infrastructure.
Strengthening Financial Position
Even amid softness in core markets, Navitas has managed to cut costs, lowering operating expenses from $19.9 million in the fourth quarter of 2024 to $17.2 million in the first quarter of 2025, with a target of further reduction to $15.5 million in the upcoming quarters. The company maintains a debt-free balance sheet, $75 million in cash and continues to invest in high-growth areas. Combining its cost reduction and efficiency improvement initiatives along with a strong cash position, clean balance sheet and growth outlook, the company expects to reach positive EBITDA in 2026.
Snags Remain
Despite its strong innovation pipeline and long-term growth prospects, Navitas Semiconductor faces several near-term headwinds. The company continues to report muted revenue growth and guidance indicating ongoing softness in core markets like EVs, solar and industrials due to inventory corrections and weak demand. Gross margins in the first quarter also declined sequentially, impacted by a less favorable product mix. Additionally, operating losses persist and management does not expect profitability before 2026. Exposure to tariff risks, particularly in its SiC business, adds to the uncertainty.
Meanwhile, established rivals like Wolfspeed (WOLF - Free Report) and Power Integrations (POWI - Free Report) continue to invest aggressively in wide bandgap technologies, supported by stronger revenue bases and deeper customer relationships. Until design wins convert into revenues, NVTS remains vulnerable to cyclical downturns, margin pressure and increasing competitive intensity in the GaN and SiC power electronics space.
Estimate for Navitas' Earnings Trends Down
The Zacks Consensus Estimate for 2025 loss is pegged at 19 cents per share, moving south over the past 90 days.
NVTS’ earnings were in line with the Zacks Consensus Estimate in each of the trailing four quarters.
Image Source: Zacks Investment Research
Expensive Valuation
NVTS stock trades at a forward 12-month price-to-sales (P/S) of 15.5X, significantly higher than the industry average of 8.6X. This compares to WOLF’s 12-month P/S of 0.47X and POWI’s 6.34X.
Image Source: Zacks Investment Research
Final Take on NVTS
Given near-term headwinds, slowing earnings momentum and a stretched valuation, investors may want to refrain from chasing Navitas Semiconductor stock right now. Despite a strong innovation roadmap, the company trades at a steep forward P/S of 15.5x, well above the industry average, while 2025 earnings estimates have been revised downward. With a Zacks Rank #3 (Hold) and no near-term catalyst in sight, NVTS lags peers like Wolfspeed and Power Integrations in scale and profitability. Until its design wins translate into sustained revenues and earnings growth, the stock may be better watched than bought.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.