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Navitas Shares Drop 18% in a Month: Buy, Sell or Hold the Stock?
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Key Takeaways
NVTS shares fell 18.3% in a month after weak Q2 results and outlook weighed on performance.
Revenues slid 29.2% to $14.5M, with Q3 guidance impacted by tariffs and mobile business shift.
NVTS sees AI data center and power transition as multi-quarter growth drivers for GaN and SiC.
Navitas Semiconductor (NVTS - Free Report) shares have dropped 18.3% in a month, underperforming the Zacks Computer and Technology sector’s return of 3%. The underperformance can be attributed to sluggish second-quarter 2025 results and an unimpressive outlook. Since the second-quarter 2025 results reported on Aug. 4, shares have dropped 14%.
Navitas reported a second-quarter 2025 non-GAAP loss of 5 cents per share, which was in line with the Zacks Consensus Estimate. The figure was narrower than the company’s year-ago quarter loss of 7 cents per share. Revenues decreased 29.2% year over year to $14.5 million, lagging the Zacks Consensus Estimate by 0.23%.
Navitas expects third-quarter 2025 revenues of $10 million (+/- $0.5 million), reflecting adverse impacts from China tariff risks for its silicon carbide business and its strategic decision to deprioritize lower-margin China mobile business.
Navitas Semiconductor Corporation Price and Consensus
The Zacks Consensus Estimate for revenues is currently pegged at $9.99 million, indicating a 53.94% decline from the year-ago reported quarter. The consensus mark for third-quarter 2025 loss is pegged at 5 cents per share, wider by a penny over the past 30 days.
Year to date (YTD), Navitas shares have jumped 93.9% outperforming the broader sector as well as competitors including On Semiconductor (ON - Free Report) and Wolfspeed (WOLF - Free Report) . While the broader sector has returned 13.8%, shares of On Semiconductor and Wolfspeed dropped 19% and 79.7%, respectively.
NVTS Stock’s YTD Performance
Image Source: Zacks Investment Research
Navitas stock is currently trading above the 200-day moving average, indicating a bullish trend.
NVTS Stock Trades Above the 200-Day SMA
Image Source: Zacks Investment Research
Navitas to Benefit From AI Data Center and Power Transition
Navitas Semiconductor is a well-known provider of power semiconductors driven by its GaN (gallium nitride) business, under GaNFast, GaNSafe and GaNSense brands. The company believes AI data center and related energy infrastructure opportunities represent a very sizable $2.6 billion per year market opportunity for the industry as well as NVTS.
Navitas is expected to benefit from growing demand for power that is served by the company’s GaN and SiC technologies. The company believes that this transition toward AI data center and energy infrastructure markets will take multiple quarters. Navitas raised $97 million in net capital and plans to reduce operating expenses to drive capital efficiency.
For third-quarter 2025, operating expenses are expected to be roughly $15.5 million, down from $16.1 million reported in second-quarter 2025.
NVTS to Benefit From Rich Partner Base
Navitas benefits from a rich partner base that includes the likes of NVIDIA (NVDA - Free Report) , Powerchip and Xiaomi.
NVIDIA has selected Navitas to support next-generation 800V data centers. In stage 1, Solid-State Transformers are expected to replace antiquated Low-Frequency Transformers, leveraging Navitas’ unique Ultra-High Voltage SiC to improve the efficiency and robustness of the power grid. This creates $500 million per year SiC market potential by 2030.
In stage 2, 800V DC/DC can leverage Navitas’ high-voltage GaN and SiC, which, combined with new 80-200V GaN, can support the highest efficiency and density. This creates a $1 billion per year GaN and SiC market potential by 2030. In stage 3, a 48V DC/DC to power an AI processor can utilize Navitas’ new 80-200V GaN to support the highest efficiency and density. This creates a $1.2 billion per year market potential by 2030.
Navitas inked a partnership deal with Powerchip for manufacturing 200mm (eight-inch) 180nm GaN to support plans for higher levels of integration at a lower cost and greater capacity. Over the next couple of years, NVTS expects high-voltage customers to transition to Powerchip's eight-inch factory, which can produce nearly 80% more chips per wafer compared to existing TSMC’s six-inch for little incremental cost. This is expected to boost Navitas’ gross margin.
In the high-end mobile GaN charger market, Xiaomi and Navitas announced the world’s smallest and fastest charger to date, delivering 90W in the size of a typical 12W silicon charger.
Here is Why Navitas Shares a Hold Right Now
Navitas shares are overvalued, as suggested by the Value Score of F. In terms of forward Price/Sales (P/S), NVTS is trading at 23.77X compared with the broader sector’s 6.78X, Infineon Technologies’ 2.88X, On Semiconductor’s 3.33X, and Wolfspeed’s 0.24X.
Price/Sales (F12M)
Image Source: Zacks Investment Research
The company’s near-term prospects are expected to suffer from sluggishness in solar, EV and industrial end-markets, negative impact of tariffs and the removal of tax credits for the solar and EV industry. This, along with Navitas’ focus on strengthening its footprint within the mobile and consumer segments, is expected to hurt near-term financial performance.
Image: Bigstock
Navitas Shares Drop 18% in a Month: Buy, Sell or Hold the Stock?
Key Takeaways
Navitas Semiconductor (NVTS - Free Report) shares have dropped 18.3% in a month, underperforming the Zacks Computer and Technology sector’s return of 3%. The underperformance can be attributed to sluggish second-quarter 2025 results and an unimpressive outlook. Since the second-quarter 2025 results reported on Aug. 4, shares have dropped 14%.
Navitas reported a second-quarter 2025 non-GAAP loss of 5 cents per share, which was in line with the Zacks Consensus Estimate. The figure was narrower than the company’s year-ago quarter loss of 7 cents per share. Revenues decreased 29.2% year over year to $14.5 million, lagging the Zacks Consensus Estimate by 0.23%.
Navitas expects third-quarter 2025 revenues of $10 million (+/- $0.5 million), reflecting adverse impacts from China tariff risks for its silicon carbide business and its strategic decision to deprioritize lower-margin China mobile business.
Navitas Semiconductor Corporation Price and Consensus
Navitas Semiconductor Corporation price-consensus-chart | Navitas Semiconductor Corporation Quote
The Zacks Consensus Estimate for revenues is currently pegged at $9.99 million, indicating a 53.94% decline from the year-ago reported quarter. The consensus mark for third-quarter 2025 loss is pegged at 5 cents per share, wider by a penny over the past 30 days.
Year to date (YTD), Navitas shares have jumped 93.9% outperforming the broader sector as well as competitors including On Semiconductor (ON - Free Report) and Wolfspeed (WOLF - Free Report) . While the broader sector has returned 13.8%, shares of On Semiconductor and Wolfspeed dropped 19% and 79.7%, respectively.
NVTS Stock’s YTD Performance
Image Source: Zacks Investment Research
Navitas stock is currently trading above the 200-day moving average, indicating a bullish trend.
NVTS Stock Trades Above the 200-Day SMA
Image Source: Zacks Investment Research
Navitas to Benefit From AI Data Center and Power Transition
Navitas Semiconductor is a well-known provider of power semiconductors driven by its GaN (gallium nitride) business, under GaNFast, GaNSafe and GaNSense brands. The company believes AI data center and related energy infrastructure opportunities represent a very sizable $2.6 billion per year market opportunity for the industry as well as NVTS.
Navitas is expected to benefit from growing demand for power that is served by the company’s GaN and SiC technologies. The company believes that this transition toward AI data center and energy infrastructure markets will take multiple quarters. Navitas raised $97 million in net capital and plans to reduce operating expenses to drive capital efficiency.
For third-quarter 2025, operating expenses are expected to be roughly $15.5 million, down from $16.1 million reported in second-quarter 2025.
NVTS to Benefit From Rich Partner Base
Navitas benefits from a rich partner base that includes the likes of NVIDIA (NVDA - Free Report) , Powerchip and Xiaomi.
NVIDIA has selected Navitas to support next-generation 800V data centers. In stage 1, Solid-State Transformers are expected to replace antiquated Low-Frequency Transformers, leveraging Navitas’ unique Ultra-High Voltage SiC to improve the efficiency and robustness of the power grid. This creates $500 million per year SiC market potential by 2030.
In stage 2, 800V DC/DC can leverage Navitas’ high-voltage GaN and SiC, which, combined with new 80-200V GaN, can support the highest efficiency and density. This creates a $1 billion per year GaN and SiC market potential by 2030. In stage 3, a 48V DC/DC to power an AI processor can utilize Navitas’ new 80-200V GaN to support the highest efficiency and density. This creates a $1.2 billion per year market potential by 2030.
Navitas inked a partnership deal with Powerchip for manufacturing 200mm (eight-inch) 180nm GaN to support plans for higher levels of integration at a lower cost and greater capacity. Over the next couple of years, NVTS expects high-voltage customers to transition to Powerchip's eight-inch factory, which can produce nearly 80% more chips per wafer compared to existing TSMC’s six-inch for little incremental cost. This is expected to boost Navitas’ gross margin.
In the high-end mobile GaN charger market, Xiaomi and Navitas announced the world’s smallest and fastest charger to date, delivering 90W in the size of a typical 12W silicon charger.
Here is Why Navitas Shares a Hold Right Now
Navitas shares are overvalued, as suggested by the Value Score of F. In terms of forward Price/Sales (P/S), NVTS is trading at 23.77X compared with the broader sector’s 6.78X, Infineon Technologies’ 2.88X, On Semiconductor’s 3.33X, and Wolfspeed’s 0.24X.
Price/Sales (F12M)
Image Source: Zacks Investment Research
The company’s near-term prospects are expected to suffer from sluggishness in solar, EV and industrial end-markets, negative impact of tariffs and the removal of tax credits for the solar and EV industry. This, along with Navitas’ focus on strengthening its footprint within the mobile and consumer segments, is expected to hurt near-term financial performance.
Navitas currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable point to start accumulating the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.