Where Will Navitas Semiconductor Stock Be in 3 Years?
Navitas' stock trades about 70% below its all-time high.
It faces challenging macro headwinds.
Its stock looks expensive relative to its growth potential.
10 stocks we like better than Navitas Semiconductor ›
Navitas Semiconductor (NASDAQ: NVTS), a producer of gallium nitride (GaN) and silicon carbide (SiC) chips, took its investors on a wild ride after it went public by merging with a special purpose acquisition company (SPAC) on Oct. 21, 2021. Its stock opened at $13, soared to a record high of $22.19 a month later, but sank to an all-time low of $1.52 on April 4, 2025. Like many other SPAC-backed start-ups, Navitas disappointed its investors by missing its own growth forecasts and racking up steep losses.
Today, Navitas' stock trades just above $7 a share. It bounced back as its new AI data center partnership with Nvidia (NASDAQ: NVDA) attracted a stampede of bulls and squeezed out the bears. But could Navitas' stock generate even bigger gains and set fresh highs over the next three years?
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
What happened over the past three years?
GaN and SiC power chips are faster, more power-efficient, and can operate at higher temperatures and voltages than traditional silicon chips. That makes them well-suited for mobile fast chargers, electric vehicle (EV) chargers, laptop adapters, data center power supplies, solar inverters, industrial motor drives, and energy storage solutions.
Navitas generates most of its revenue from its GaNFast Power ICs, which bundle together switching, sensing, control, and security features on a single chip. It expanded into the SiC market through its acquisition of GeneSiC, which mainly supplies SiC power chips for the EV and data center markets, in 2022. Its major customers now include Dell Technologies (NYSE: DELL), which uses GaN/SiC chips in its laptop chargers; the Chinese automaker Changan, which uses its GaN ICs in its on-board EV chargers; and Nvidia, which selected its 800 V HVDC architecture to support its AI workloads at its data centers earlier this year.
Navitas is a fabless chipmaker that outsources its manufacturing to third-party foundries. That capital-light model enables it to focus on developing new chips instead of spending a lot of money on upgrading its plants. That sets it apart from Wolfspeed (NYSE: WOLF), the SiC and GaN chipmaker, which filed for bankruptcy this June after failing to balance the costs of running its own foundries with its soaring debt levels.
Before Navitas went public, it claimed it would grow its annual revenue from $12 million in 2020 to $308 million in 2024. It also expected to achieve a positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by 2023. But here's what actually happened over the past three years.
Data source: Navitas, Marketscreener.
In 2024, Navitas' growth stalled out as the macro headwinds disrupted its orders from its EV, solar, and industrial customers. It also ended a key distribution deal for its SiC products, and it generated more sales from its lower-margin GaN chips instead of its higher-margin SiC chips. That pressure, along with its rising R&D expenses, caused it to remain deeply unprofitable on a generally accepted accounting principles (GAAP) basis as its adjusted EBITDA stayed negative.
What will happen to Navitas over the next three years?
Over the next few years, Navitas' data center deal with Nvidia -- which will be ramped up in 2026 and expanded in 2027 -- could significantly boost its revenue. It should also benefit from the growing adoption of GaN and SiC chips in EV chargers, laptop chargers, and other electronic devices. However, the tariffs against China and its intentional retreat from its lower-margin (but higher revenue) mobile markets could offset those tailwinds and throttle its overall growth.
Based on those expectations, analysts expect Navitas' revenue to grow at a CAGR of 7% from 2024 to 2027 -- but its adjusted EBITDA should stay negative by the final year. And with an enterprise value of $1.27 billion, it still looks expensive at 26 times this year's sales.
Navitas' valuations are likely being inflated by its deal with Nvidia. Expectations for lower interest rates are amplifying those gains by driving more investors toward speculative stocks again. Those higher valuations could cap its gains over the next three years.
If Navitas matches analysts' expectations, grows its revenue by another 7% in 2028, and trades at a more reasonable 10 times its forward sales, its stock price would actually decline 7% to roughly $6.10 and reduce its enterprise value to $1.1 billion. Therefore, its stock could underperform the market until it stabilizes its core businesses. But over the long term, Navitas could still be a good long-term play on GaN and SiC chips as they displace traditional silicon chips.
Should you invest $1,000 in Navitas Semiconductor right now?
Before you buy stock in Navitas Semiconductor, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Navitas Semiconductor wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,113,059!*
Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of August 13, 2025
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Wolfspeed. The Motley Fool has a disclosure policy.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
17 minutes ago
- CTV News
Edmonton's Air Canada union workers say arbitration order ‘defeats the purpose'
A group of workers represented by Air Canada's union begin their strike outside the Edmonton International Airport on Aug. 16, 2025. (Brandon Lynch/CTV News Edmonton) As Federal Jobs Minister Patty Hajdu calls for binding arbitration in the Air Canada flight attendant strike, union workers in Edmonton say they aren't pleased. Designated strike captain Christine Langelle told CTV News Edmonton on Saturday that ordering workers back to the job 'defeats the purpose.' 'We're waiting to hear from our union leaders who are negotiating, so everything is status quo until then,' she said. 'We're not pleased with the arbitration order, but that's what it's come down to.' An arbitration order would mean that the existing collective agreement between Air Canada and flight attendants represented by the Canadian Union of Public Employees (CUPE) would be extended until a new agreement is reached. 'We've been living on a 10-year contract that finally expired. A lot has changed in the last 10 years,' Langelle said. Langelle has worked as a flight attendant for 30 years and commutes from Edmonton to Vancouver. She and a group of coworkers organized outside Edmonton International Airport. While Edmonton isn't one of the bigger bases, she said it was still important for them to come out and show their support. 'There are flight attendants living in major cities who are not even making minimum wage, visiting food banks and living numerous people to an apartment,' Langelle said. Representatives of the CUPE group that covers Air Canada sent a release early Saturday morning denouncing the invocation of section 107 of the Canada Labour Code to end the strike, saying it was 'crushing flight attendants' Charter rights.' 'The Liberals have talked out of both sides of their mouths. They said the best place for this is at the bargaining table. They refused to correct this historic injustice through legislation,' said President of Air Canada's union Wesley Lesosky in the release. Meanwhile, would-be Air Canada travellers are making alternate arrangements. 'The last couple of days have been super stressful,' said Trina Swan, who was at the YEG airport Saturday. Her son is playing in the Canada Summer Games in Newfoundland. 'I knew [the flight] was going to get cancelled, so I was looking for alternate routes, panicked as heck and crying a lot the last couple days,' she told CTV News Edmonton. She said she was lucky that an agent at the airport was able to rebook her as she couldn't get through to Air Canada by phone when she first got the cancellation. 'You can only do what you can do when people are only human, you can't get mad at the staff,' she said. Late Saturday afternoon, Alberta NDP leader Naheed Nenshi released a statement calling the federal government's decision wrong and unfair to workers. 'It is wrong for the federal government to force these workers to go to work and not be paid. No one should stand for that. This move also sets a dangerous precedent and sends the wrong message to Air Canada instead of holding this very profitable company accountable,' read the release. Union representatives have said they will communicate 'detailed reactions' on Sunday. With files from CTV News National and CTV News Edmonton's Brandon Lynch
CBC
an hour ago
- CBC
'I absolutely reject the notion that our government is anti-union': Hajdu
Jobs Minister Patty Hajdu said early Saturday afternoon that she has invoked Section 107 of the Canada Labour Code to order binding arbitration between Air Canada and its union and has ordered operations to resume, hours after 10,000 flight attendants went on strike.
National Post
an hour ago
- National Post
Ultrarich building luxury underground bunkers
Just think of it as doomsday prepping gone chic. In the past few years, the ultrarich have been quietly getting their homes ready for the next big disaster by building luxury underground bunkers. Article content Witness Meta CEO Mark Zuckerberg, who's reportedly building a $300-million compound in Hawaii — complete with a 5,000-square-foot bunker that has its own energy, water and food infrastructure. Or Microsoft co-founder Bill Gates, who reportedly who has bunkers under several of his homes. Or Kim Kardashian and Shaquille O'Neal, who are also said to have explored the idea. Article content Article content 'What were once rudimentary shelters have become bespoke sanctuaries,' Naomi Corbi of SAFE, a firm specializing in secure residential design, told Robb Report. 'Today's clients want features that mirror their lifestyles — often with highly individual touches.' Article content So yes. While the rest of us are living out a Planet of the Apes dystopia above ground — or fighting off zombies, pandemics and nuclear threats — they'll be cosetted and carefree. Article content Corbi said clients have requested amenities such as a regulation-grade putting green, a climate-controlled art gallery, private theatres and hydroponic gardens. Other features could include gyms, pools, saunas, staff quarters and, really, anything that could make survival amid societal breakdown that much more cushy. Article content But if you think you can just track down one of these opulent oases and demand to be let in, think again. In a March 2024 article on the CBC News website, a rep for the Swiss-based company Oppidum, which specializes in fortified underground residences, said privacy is key in the industry. Article content 'One of the tenets of shelter design is you don't want anyone to know about it,' explained Tom Grmela, the company's head of communications. He added: 'Rarely do I ever actually meet the billionaire client. And even when you do, they always have aliases.' Article content Douglass Rushkoff, who interviewed billionaire disaster preppers for his book Survival of the Richest, said many of them were keen to keep strangers out of their sanctuaries. Article content 'These people are no more driven by fear as they are by desire,' he told BBC Science Focus. 'The idea of being isolated in a space station or underground bunker is a good thing for a lot of these types.' Article content Ultimately, though, that idea could backfire. Another option for surviving The Big One involves not keeping others out but bringing them in. As in, having one big bunker for many people, like in the video game and TV show Fallout. Article content The company Vivos specializes in these types of complexes, which can house up to 800 people and are less expensive than owning an individual bunker.
