Navitas Shares Drop 18% in a Month: Buy, Sell or Hold the Stock?
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 and Wolfspeed WOLF. 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, 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Wolfspeed (WOLF) : Free Stock Analysis Report
ON Semiconductor Corporation (ON) : Free Stock Analysis Report
Navitas Semiconductor Corporation (NVTS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
28 minutes ago
- Yahoo
Wall Street sees stock market rotation charting 'healthiest path' to new highs
The stock market's rally to record highs has started to suggest some investors see life outside of the Big Tech names that have defined markets since 2023, as lagging sectors like Health Care (XLV) and Homebuilders (XHB) — as well as out-of-favor investments like small- and mid-cap stocks — have played a larger role in this summer's move. And some strategists see this rotation as an early sign that an even healthier market dynamic could be emerging. Scott Chronert, managing director of US equity strategy at Citi, sees this broader participation as framing out "two parallel paths" for the S&P 500 — one led by the AI-fueled growth giants and the other driven by more traditional sectors tied to the economy. "The simple answer is that we see ongoing Mega Cap Growth participation, if not leadership, but with fundamental and performance broadening creating a more durable structural setup," he said on Friday. "The healthiest path to higher index levels is a combination of Growth/Tech leadership persisting but with other areas of the market additive more so than has been the case this past year." Data from Bespoke Investment Group published Friday noted investors last week showed signs of moving out of 2025's biggest winners and into less-loved pockets of the market. Over the middle three trading days last week, Bespoke's work found stocks in the worst-performing decile this year among S&P 1500 companies were up an average of 6.7%; the best performers were up less than 1% over the same period. "When momentum names stall or sell-off, it can really hit the major indices hard if no other areas of the market are there to pick up the slack," Bespoke said. "But [last] week, the year's worst performers finally saw some buying interest as investors rotated across the market instead of out of it." Ed Yardeni of Yardeni Research added that rising expectations for a September Fed rate cut helped fuel the shift, sparking a rotation from growth to value and from large caps to small- and mid-cap stocks. "We certainly welcome such a broadening," he wrote in a Sunday note to clients. 'Significant headwinds' remain Sean Simonds, US equities strategist at UBS, described the current broadening setup as "a mixed bag," noting that AI-driven momentum is starting to spill into other adjacent areas like software, power, and re-shoring. Simonds added that after a wave of downward earnings revisions earlier this year, earnings breadth has also shown signs of improving. However, areas such as consumer and healthcare remain weaker, even if the outlook there has turned "less negative." Gerry Fowler, head of European equity strategy at UBS, added that small-cap stocks in particular depend on a 'Goldilocks' scenario in which the Fed manages to cut rates without spooking markets. "If Powell is able to stay out of the headlines and deliver the September cut in line with expectations, there is room for the broader market to remain quite healthy," Fowler said. "On either side of Goldilocks, you've got significant headwinds for the Russell 2000." Read more: How the Fed rate decision affects your bank accounts, loans, credit cards, and investments Fowler's cautious note echoes a broader concern on Wall Street, which is that signs of rotation among styles and sectors overstate the extent to which this shift sees investors actually preferring to put more money behind new themes. DataTrek Research noted in a recent report that just two of the S&P 500's 11 sectors — Technology (XLK) and Industrials (XLI) — have outperformed since the index's April lows. The firm also noted that the top 20 names in the index, or nearly half the S&P 500 on a market cap basis, are up more than 40% on average over that period. That concentration means the durability of the rally may hinge on whether new pockets of strength can sustain recent momentum. Looking ahead, Simonds cautioned that momentum could stall if earnings expectations fade or if the Fed delivers a surprise that clashes with market expectations. "There's still the possibility of earnings expectations slowing into the second half of this year and first half of next year," he said. 'And any disappointment out of Jackson Hole or into the September Fed meeting will definitely take some wind out of the sails as well." Allie Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28 minutes ago
- Yahoo
Statistics Canada to release July inflation report this morning
OTTAWA — Statistics Canada is set to release its consumer price index report for July this morning. A poll of economists provided by LSEG Data & Analytics expects the annual inflation rate dipped to 1.8 per cent in July. That's down from 1.9 per cent year-over-year in June. Economists are hoping the report will provide further clarity on how tariffs are affecting the economy. The Bank of Canada will be paying particular attention to core inflation metrics, which strip out more volatile categories from the readings, as they've been stubbornly strong. The central bank's recent summary of deliberations from its July 30 interest rate decision showed members thought the impact of tariffs on consumer prices so far has been modest. This report by The Canadian Press was first published Aug. 19, 2025. The Canadian Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Android Authority
30 minutes ago
- Android Authority
Verizon's loyalty discount mess is somehow getting worse
Edgar Cervantes / Android Authority TL;DR Verizon subscribers are reporting that the carrier is tricking them into accepting lower discounts. A new $10 discount on the My Verizon app replaced the existing $20 loyalty discount without warning. Some users say they were able to stack the two discounts, but many others report increased bills after unknowingly accepting the new offer. Verizon's loyalty discount mess seems to be getting worse. Users are now reporting that they are being tricked into accepting lower discounts, replacing higher existing benefits without warning. One Reddit user warned others not to accept a $10 discount prompt in the My Verizon app, since it canceled out their existing $20 discount and left them paying more. 'It prompted me for a $10 discount off my line, so I hit accept. That overrode the $20, increased my bill, and support says there's no way to revert,' the user wrote in frustration. Other subscribers chimed in with similar stories, saying they also felt deceived into accepting smaller discounts. To make matters worse, customers reported receiving follow-up emails with the subject line 'Good news — your bill just got lower,' even though their bills have actually gone up. 'Support agent has no way to revert. It's funny that after my $20 discount being replaced to $10 discount, I received an email titled as: good news – your bill just got lower, while in reality my bill just got higher, up $10 per month. Support agent also confirms my bill will go up $10 per month. The email title is 100% a lie in any means,' wrote a user. Not everyone is experiencing the same outcome, though. Some users say they were able to stack the new $10 loyalty discount on top of their existing $20 discount, suggesting Verizon may be applying these changes differently depending on the plan. Either way, it's worth calling customer care before accepting any new discount offers to make sure you're not losing benefits you already have. This all comes after Verizon confirmed plans to cut loyalty discounts, raise fees, and remove perks earlier this month, sparking backlash from customers who saw their bills going up. Verizon defended the changes as 'adjustments in line with market rates,' similar to what other carriers have done. Still, the company's handling of its most loyal customers has been a particular sore spot. Don't want to miss the best from Android Authority? Set us as a preferred source in Google Search to support us and make sure you never miss our latest exclusive reports, expert analysis, and much more. Loyalty discounts on Verizon are set to end as early as September 1, 2025, with users potentially losing between $10 and $25 per line. After confirming the cuts, Verizon later reinstated discounts for some customers who threatened to leave. In at least one case, a user said they even got a $20 monthly discount restored after filing a complaint with Verizon's CEO. But with these latest reports of misleading discount prompts and contradictory emails, Verizon isn't exactly winning any brownie points from long-time customers right now. Perhaps the carrier should consider clear communication so subscribers can at least know what they're in for instead of being taken by surprise. Follow
