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Buy, Sell or Hold Navitas Stock? Key Tips Ahead of Q2 Earnings

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Key Takeaways

  • NVTS expects Q2 2025 revenues of $18 to $20M.
  • Sluggish solar, EV, and industrial markets and trade issues likely hurt Q2 performance.
  • NVTS is expanding in GaN tech with NVIDIA, targeting AI data centers and EV power systems.

Navitas Semiconductor (NVTS - Free Report) is set to release its second-quarter 2025 results on Aug. 4.

For the second quarter of 2025, net revenues are expected to be between $18 and $20 million. The Zacks Consensus Estimate for second-quarter revenues is pegged at $14.5 million, suggesting a year-over-year decline of 29.1%. 

The consensus mark for loss is pegged at 5 cents per share for the second quarter of 2025, unchanged over the past 30 days. NVTS reported a loss of 7 cents per share in the year-ago quarter.
 

 

Let’s see how things have shaped up for this announcement.

Key Factors to Note for NVTS Earnings

Navitas Semiconductor is a well-known provider of power semiconductors driven by its GaN (gallium nitride) business, under GaNFast, GaNSafe and GaNSense brands. Investments by NVIDIA (NVDA - Free Report) and Tesla in GaN technology, as well as expanding footprint across mobile, electric vehicle (EV), and energy sectors, bode well for Navitas’ prospects. 

However, sluggishness in solar, EV and industrial end-markets is expected to have negatively impacted second-quarter 2025 results. Unfavorable product mix is expected to have hurt gross margin in the to-be-reported quarter. Uncertainty over tariffs and trade issues between the United States and China has been a headwind for Navitas.

NVTS Shares Outperform Sector

Navitas Semiconductor shares have jumped 97.8% year to date, outperforming the broader Zacks Computer and Technology sector’s return of 11.4% and the Zacks Electronics Semiconductors industry’s return of 16.7%.

NVTS Stock’s Performance

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Navitas Semiconductor stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.

In terms of the forward 12-month Price/Sales, NVTS is trading at 16.92X, higher than the broader sector’s 6.71X.

Price/Sales (F12M)

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Navitas Semiconductor stock is currently trading above the 50-day and 200-day moving averages, indicating a bullish trend.

 

NVTS Stock Trades Above 50-Day and 200-Day SMAs

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

NVTS’ Strong Portfolio Aids Growth Amid Stiff Competition

Navitas Semiconductor is ramping up new 80 - 120V GaN devices in 2025 to target the 48V DC-DC converter market. In Solar & Energy Storage, the launch of NVTS’ bidirectional GaN ICs – GaN BDS, in the first quarter of 2025, is enabling single-stage power conversion. This disrupts traditional two-stage architectures used in more than 70% of power electronics, reducing cost, size and power loss by 30% or more. The innovation reveals high-efficiency applications across solar microinverters, EV onboard chargers, energy storage and motor control systems, with customer ramp-ups expected in late 2025 and 2026.

In the EV domain, NVTS has secured more than 40 design wins across China, Europe, the United States and Korea. With a rapidly expanding $900 million EV pipeline, Navitas is poised to scale in high-voltage, high-efficiency onboard and roadside chargers beginning in 2026.

An expanding relationship with NVIDIA is noteworthy. In May, Navitas Semiconductor collaborated with NVIDIA to support the development of NVIDIA’s new 800V high-voltage DC (HVDC) architecture. NVIDIA’s 800V HVDC approach is designed for next-generation AI data centers, including systems like NVIDIA Rubin Ultra. NVIDIA 800V HVDC architecture will improve end-to-end power efficiency up to 5%, reduce maintenance costs by 70%, and lower cooling costs, all using NVTS’ GaNFast and GeneSiC power technologies.

However, Navitas Semiconductor faces significant competition from the likes of Wolfspeed (WOLF - Free Report) and Power Integrations (POWI - Free Report) . These rivals continue to invest aggressively in wide bandgap technologies, supported by stronger revenue bases and deeper customer relationships.  

Power Integrations’ GaN portfolio includes InnoSwitch3, InnoMux-2 ICs, HiperPFS and Scale-2 Gate Drivers. Power Integrations is the only GaN supplier offering devices rated at 900V, 1250V and 1700V, giving it an advantage in grid-tolerant and high-voltage applications. Wolfspeed has been taking initiatives to expand manufacturing capacity. A state-of-the-art, automated 200-millimeter (mm) capable silicon carbide device fabrication facility in New York (the Mohawk Valley fab) is noteworthy. Wolfspeed enjoys a first-mover advantage in 200-mm wafer volume production, which is the silicon carbide industry's most advanced technology.

Conclusion

NVTS’ muted revenue growth outlook in the near term, along with a stretched valuation, makes the stock risky for investors. 

Navitas Semiconductor currently has a Zacks Rank #4 (Sell), which implies that investors should avoid the stock ahead of second-quarter 2025 results. 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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