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NVTS Pre-Q3 Earnings Analysis: Should You Hold or Fold the Stock?

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Key Takeaways

  • Navitas Semiconductor expects revenues of approximately $10M for third-quarter of 2025.
  • GaN and SiC technologies may aid demand from AI data centers and energy-efficient systems.
  • China tariffs, weak EV demand, and reduced mobile exposure could weigh on near-term results.

Navitas Semiconductor ((NVTS - Free Report) ) is scheduled to report its third-quarter 2025 results on Nov. 3, 2025.

Navitas Semiconductor anticipates revenues of $10 million (+/- $0.5 million) for the third quarter of 2025. The Zacks Consensus Estimate for third-quarter revenues is pegged at $10.1 million, suggesting a year-over-year decline of 53.4%.

The consensus mark for loss is pegged at 5 cents per share for the third quarter of 2025, unchanged over the past 60 days. NVTS reported a loss of 6 cents per share in the year-ago quarter.

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Navitas Semiconductor’s bottom-line results have matched the Zacks Consensus Estimate in the trailing four quarters, with an average surprise of 0.0%.

Earnings Whispers for NVTS

Our proven model does not conclusively predict an earnings beat for Navitas Semiconductor this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Navitas Semiconductor has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Influence NVTS’ Q3 Results

Navitas Semiconductor is a well-known provider of power semiconductors driven by its GaN (gallium nitride) business, under GaNFast, GaNSafe and GaNSense brands, along with silicon carbide (SiC) devices. Navitas is expected to benefit from growing demand for power that is served by the company’s GaN and SiC technologies.

Navitas Semiconductor is in a good position to benefit from the fast growth of artificial intelligence (AI) data centers. Its GaN and SiC chips are well-suited for new high-voltage systems that need more efficient power use. Moreover, the company’s expanding footprint across mobile, electric vehicle (EV), and energy sectors is likely to have positively impacted the to-be-reported quarter’s performance. The company’s differentiated GaN and SiC devices help address the growing global demand for high-efficiency power conversion, positioning it to benefit as end-market conditions stabilize and customers adopt more advanced power platforms.

Navitas Semiconductor’s rich partner base, which includes the likes of Samsung and Xiaomi, is likely to have aided the company’s performance in the to-be-reported quarter. In the second quarter of 2025, Navitas Semiconductor expanded its partnership with Xiaomi to introduce the world’s smallest and fastest charger to date, delivering 90W in the size of a typical 12W silicon charger.

Moreover, Navitas Semiconductor has started working with Powerchip to move its GaN chip production from 6-inch to 8-inch wafers. The goal here is to produce more chips at lower costs. The 8-inch wafers support the goal as they can produce about 80% more chips than the old 6-inch ones, without adding much to production costs. The above-mentioned factors are likely to have contributed to the company’s prospects in the to-be-reported quarter.

However, Navitas Semiconductor is witnessing near-term challenges in its China business and expects its third-quarter revenues to be down due to tariff risks in China. Moreover, lower demand in EV and industrial end markets is also expected to have hurt third-quarter performance. Additionally, the company has also decided to reduce exposure to low-margin mobile business in China, which is expected to have hurt the company’s financial performance in the third quarter.

NVTS Price Performance & Stock Valuation

Navitas Semiconductor shares have rallied 259.4% year to date, outperforming the Zacks Electronics - Semiconductors industry’s growth of 52.4%. The stock also outperformed its industry peers, including Lam Research ((LRCX - Free Report) ), Marvell Technology ((MRVL - Free Report) ) and Ambarella ((AMBA - Free Report) ). Year to date, shares of Lam Research and Ambarella have gained 123.3% and 16.4%, respectively, while Marvell Technology stock lost 16.4%.

YTD Price Return Performance

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Navitas Semiconductor is currently trading at a higher price-to-sales (P/S) multiple compared with the industry. NVTS’ forward 12-month P/S ratio sits at 53.43X, significantly higher than the industry’s forward 12-month P/S ratio of 10.15X.

NVTS Forward 12-Month P/S Ratio

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Navitas Semiconductor stock also trades at a higher P/S multiple compared with other industry peers, including Lam Research, Marvell Technology and Ambarella. At present, Lam Research, Marvell Technology and Ambarella have P/S multiples of 9.45X, 8.61X and 9.12X, respectively.

Investment Consideration for Navitas Semiconductor

Navitas Semiconductor is in a good position to benefit from the fast growth of AI data centers. Its GaN and SiC chips are well-suited for new high-voltage systems that need more efficient power use. Additionally, Navitas Semiconductor’s shift to 8-inch GaN wafer production with Powerchip should help the company make more chips at a lower cost and improve margins over time.

However, management expects a few softer quarters before new AI and infrastructure projects begin to generate higher revenues. Weakness in its China business and risks from tariffs, along with subdued demand in EV and industrial end markets, are likely to hurt the company's prospects in the near term.

Conclusion: Hold Navitas Semiconductor Stock for Now

Navitas Semiconductor is in a good position to benefit from the fast growth of AI data centers. Its GaN and SiC chips are well-suited for new high-voltage systems that need more efficient power use. Additionally, Navitas Semiconductor’s shift to 8-inch GaN wafer production with Powerchip should help the company make more chips at a lower cost and improve margins over time.

However, risks from tariffs and high valuation warrant a cautious approach to the stock.

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