Latest news with #NVTS
Yahoo
5 hours ago
- Business
- Yahoo
Navitas Shares Drop 18% in a Month: Buy, Sell or Hold the Stock?
Navitas Semiconductor NVTS 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 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 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 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 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 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 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 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 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 Investment Research
Globe and Mail
4 days ago
- Automotive
- Globe and Mail
Where Will Navitas Semiconductor Stock Be in 3 Years?
Key Points 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.
Forbes
22-07-2025
- Automotive
- Forbes
What Next For Navitas Stock After 2x Rise This Year?
Photo illustration byNavitas Semiconductor (NASDAQ:NVTS) is a firm that designs and produces next-generation power semiconductors utilized in consumer electronics, solar energy systems, and electric vehicles. It experienced a nearly 8% increase in stock price during Friday's trading session. The stock has effectively doubled year-to-date. This rise has been fueled by increasing investor confidence regarding Navitas' collaboration with Nvidia. In May, both companies declared their partnership aimed at Nvidia's state-of-the-art 800V high-voltage direct current (HVDC) architecture, which seeks to improve the energy efficiency and scalability of data centers. This agreement could establish Navitas as a provider of advanced silicon carbide (SiC) and gallium nitride (GaN) power chips for the new HVDC architecture, which Nvidia claims will reduce copper usage, minimize rack dimensions, and enhance reliability and efficiency. Although the collaboration with the AI processor giant is perceived as a vote of confidence in Navitas' capabilities, Navitas is only one of multiple suppliers involved in Nvidia's project. The proportion of Navitas content within each server system and the potential for revenue generation remain uncertain. Nvidia's press release mentioned other companies such as Infineon, MPS, ROHM, STMicroelectronics, and Texas Instruments, along with Navitas, as semiconductor suppliers for the initiative. (Related: RGTI Stock: Path To 10x Growth) Navitas Stock Appears Risky In general, Navitas Semiconductor (NVTS) stock does not seem appealing at its current valuation, primarily due to its high valuation and weak fundamentals. Our evaluation of Growth, Profitability, Financial Stability, and Downturn Resilience suggests that the company's operational performance and financial status are concerning. Nevertheless, if you are looking for upside potential with lower volatility compared to individual stocks, the Trefis High Quality portfolio offers an alternative, having outperformed the S&P 500 and yielded returns exceeding 91% since its launch. NVTS is trading at a premium, with a price-to-sales ratio surpassing 17x, compared to only 3.1 for the S&P 500. While the firm reported an impressive average revenue growth of 53.5% over the last three years, this growth has been inconsistent, with revenues decreasing by 16.9% in the past 12 months and plummeting by 39.5% year-over-year in the most recent quarter. Profitability also poses a challenge. Navitas recorded an operating loss of $122 million over the past year, resulting in an exceptionally weak operating margin of -164.2%, which is significantly worse than that of most of its competitors. On a brighter note, the balance sheet is relatively stable. Navitas holds just $6.9 million in debt, resulting in a low debt-to-equity ratio of 0.5% (in contrast to 19.4% for the S&P 500), as well as a strong cash-to-assets ratio of 20.3%. However, downturn resilience remains low. NVTS stock has performed significantly worse than the benchmark S&P 500 index during many recent downturns. While investors hope for a soft landing for the U.S. economy, what could happen if another recession occurs? Our dashboard How Low Can Stocks Go During A Market Crash illustrates how key stocks performed during and following the last six market crashes. While it may be wise to steer clear of NVTS stock for the time being, you might want to consider the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (a combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to deliver robust returns for investors. What makes this possible? The quarterly rebalanced mix of large-, mid-, and small-cap RV Portfolio stocks has offered an effective strategy to capitalize on positive market conditions while mitigating losses during market downturns, as detailed in the RV Portfolio performance metrics. Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates
Globe and Mail
09-07-2025
- Automotive
- Globe and Mail
After a 246% Rally, Is Navitas Semiconductor a Buy or a Hold in 2025?
Navitas Semiconductor NVTS has delivered a standout performance in 2025, with its stock skyrocketing 246% over the past three months, far outpacing the broader Electronics - Semiconductors industry, the Computer and Technology sector and benchmark indices like the S&P 500. The rally has also outpaced the broader PHLX Semiconductor Index's (SOX) 58.3% growth. While revenue growth remains modest, investor enthusiasm is fueled by Navitas' expanding customer pipeline, new design wins and growing traction across EVs, AI data centers and renewable energy. The company's innovations in gallium nitride (GaN) and silicon carbide (SiC) are positioning it as a key player in next-gen power electronics. Three-Month Share Comparison But with shares already up triple digits, is it time for investors to buy NVTS stock, or has the easy money been made? Let's delve deeper. Industry-First Bidirectional GaN IC Launch Navitas launched the industry's first production-ready bidirectional GaN integrated circuit (IC) in the first quarter of 2025, enabling single-stage power conversion. This disrupts traditional two-stage architectures used in over 70% of power electronics, reducing cost, size and power loss by 30% or more. The innovation reveals high-efficiency applications across solar microinverters, electric vehicle (EV) onboard chargers, energy storage and motor control systems, with customer ramp-ups expected in late 2025 and 2026. GaNSafe Automotive Qualification and EV Design Wins Navitas' GaNSafe platform has achieved AEC-Q101 automotive-grade qualification, a milestone enabling its use in EVs. This led to a landmark design win with Changan Auto, making it the first GaN platform adopted in a mainstream EV. With more than 40 EV design wins across China, Europe, the United States and Korea and a rapidly expanding $900 million EV pipeline, Navitas is poised to scale in high-voltage, high-efficiency onboard and roadside chargers beginning in 2026. AI Data Center Power Platform Expansion Navitas is also expanding in AI-powered data centers, a rapidly growing market. The company has secured over 40 design wins at leading Asian ODMs targeting Tier 1 hyperscalers like Google, Amazon, Facebook and Alibaba. It announced a 12-kilowatt power platform, an industry first, that enables high-performance Blackwell and Rubin-class AI servers to reach up to 500kW per rack. This expands on earlier platforms (2.7kW-8.5kW) and positions Navitas as a critical enabler of next-generation compute infrastructure. Strengthening Financial Position Even amid softness in core markets, Navitas has managed to cut costs, lowering operating expenses from $19.9 million in the fourth quarter of 2024 to $17.2 million in the first quarter of 2025, with a target of further reduction to $15.5 million in the upcoming quarters. The company maintains a debt-free balance sheet, $75 million in cash and continues to invest in high-growth areas. Combining its cost reduction and efficiency improvement initiatives along with a strong cash position, clean balance sheet and growth outlook, the company expects to reach positive EBITDA in 2026. Snags Remain Despite its strong innovation pipeline and long-term growth prospects, Navitas Semiconductor faces several near-term headwinds. The company continues to report muted revenue growth and guidance indicating ongoing softness in core markets like EVs, solar and industrials due to inventory corrections and weak demand. Gross margins in the first quarter also declined sequentially, impacted by a less favorable product mix. Additionally, operating losses persist and management does not expect profitability before 2026. Exposure to tariff risks, particularly in its SiC business, adds to the uncertainty. Meanwhile, established rivals like Wolfspeed WOLF and Power Integrations POWI continue to invest aggressively in wide bandgap technologies, supported by stronger revenue bases and deeper customer relationships. Until design wins convert into revenues, NVTS remains vulnerable to cyclical downturns, margin pressure and increasing competitive intensity in the GaN and SiC power electronics space. Estimate for Navitas' Earnings Trends Down The Zacks Consensus Estimate for 2025 loss is pegged at 19 cents per share, moving south over the past 90 days. NVTS' earnings were in line with the Zacks Consensus Estimate in each of the trailing four quarters. Expensive Valuation NVTS stock trades at a forward 12-month price-to-sales (P/S) of 15.5X, significantly higher than the industry average of 8.6X. This compares to WOLF's 12-month P/S of 0.47X and POWI's 6.34X. Final Take on NVTS Given near-term headwinds, slowing earnings momentum and a stretched valuation, investors may want to refrain from chasing Navitas Semiconductor stock right now. Despite a strong innovation roadmap, the company trades at a steep forward P/S of 15.5x, well above the industry average, while 2025 earnings estimates have been revised downward. With a Zacks Rank #3 (Hold) and no near-term catalyst in sight, NVTS lags peers like Wolfspeed and Power Integrations in scale and profitability. Until its design wins translate into sustained revenues and earnings growth, the stock may be better watched than bought. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> 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 Power Integrations, Inc. (POWI): Free Stock Analysis Report Wolfspeed (WOLF): Free Stock Analysis Report Navitas Semiconductor Corporation (NVTS): Free Stock Analysis Report
Business Insider
17-06-2025
- Business
- Business Insider
Navitas Semiconductor (NVTS) was downgraded to a Hold Rating at Deutsche Bank
Navitas Semiconductor (NVTS – Research Report) received a Hold rating and price target from Deutsche Bank analyst today. The company's shares closed yesterday at $7.19. Confident Investing Starts Here: The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Navitas Semiconductor with a $3.50 average price target. NVTS market cap is currently $1.41B and has a P/E ratio of -13.92. Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NVTS in relation to earlier this year. Earlier this month, Todd Glickman, the Sr. V.P., CFO & Treasurer of NVTS sold 100,000.00 shares for a total of $800,000.00.
