Key Takeaways
- Navitas Semiconductor stock fell 23% in the past month, with the damage done on Oct. 12, 14 and 16, days with no company news.
- The selling tracked a broad chip selloff, with Wolfspeed moving in step and Vertiv down 18%, even as Navitas unveiled a power board developed with Nvidia and closed its Claros deal.
- Third-quarter results come after the close on Nov. 3, with revenue guided to $13.5 million, up from $10.5 million in the second quarter.
- At about 37x forward sales, the stock still trades above its three-year average, so the case for buying rests on revenue starting to ramp.
Navitas Semiconductor (NVTS) stock fell 23% in the past month (through Tuesday’s close), despite a run of good news from the company. It’s still up 22% in 2026, but 74% below its 52-week high.
Good news couldn’t hold it up
On Sept. 28, Navitas won a U.S. Army program for 10 kV silicon carbide power chips. An 800V AI rack design with Microchip followed on Oct. 5, and the Claros deal closed on Oct. 6. Then, after the close on Oct. 12, Navitas unveiled a 24 kW power delivery board developed with Nvidia (NVDA).
Shares rose after hours on the Nvidia news, but not for long. Three sessions did all the damage, and then some: down 7.3% on Oct. 12 (before the Nvidia news), 10.5% on Oct. 14 and 9.6% on Oct. 16. Navitas had no news on any of them.
Blame the chip selloff
On Oct. 14, Navitas gapped down at the open as the Philadelphia Semiconductor Index fell for a sixth straight session. By Friday, the streak had reached eight, the index’s longest since 2008.
Bloomberg tied the selling to higher interest rates, stretched valuations and the cost of the AI buildout. AI power names fared worse: Vertiv (VRT) fell 18% over the same month, while the Nasdaq 100 slipped just 0.5%.
Navitas has kept moving with its chip peers. It bounced on Monday as the index snapped its streak, with Wolfspeed (WOLF) up about 4%. Both slid again before Tuesday’s open, with no news from Navitas.
TIKR tracks 8 analysts on Navitas Semiconductor. How many say “Buy”?
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Claros makes the pitch bigger
Claros carries Navitas’s power chain the last step, to the processor (“grid-to-xPU,” in management’s words). When the deal closed, CEO Chris Allexandre said:
“With power now the bottleneck for AI, increases in power delivery and efficiency are the key enablers of more compute output.”
Navitas expects Claros to add at least $3.5 billion to its identified 2030 serviceable market, taking the total past $8 billion, nearly 85% of it in AI infrastructure.
Nov. 3 is the real test
The business is still tiny next to that pitch. Second-quarter revenue was $10.5 million, up 22% from the first quarter but down 28% from a year earlier as Navitas exits mobile and low-end consumer products.
Analysts expect sales to barely grow this year, then climb to $124 million by 2028.
Navitas reports third-quarter results after the close on Tuesday, Nov. 3. Management has guided for revenue of $13.5 million, which would mean a return to year-over-year growth, with AI infrastructure making up about a third of fourth-quarter sales.
Navitas has the cash to wait: $557 million at the end of June, before about $126 million in cash for Claros, against an $11.4 million operating loss for the quarter. But management doesn’t expect Claros to drive growth until around 2028 or 2029.
Still not cheap
Even now, Navitas trades at about 37x forward sales, far below its May peak of 162x but still above its three-year average of 31x.
Analysts haven’t followed the shares down. The consensus target has more than doubled over the past year, to $14.
Even Morgan Stanley, which rates the stock Sell, set a $12.60 target on Sept. 29.
My take: I wouldn’t sell after a fall this steep, but I’d wait for Nov. 3 before loading up. At 37x forward sales, the stock prices in a ramp that hasn’t reached revenue, and until it does, Navitas will likely keep trading with the chip index and names like Vertiv.
Of course, a third quarter in the guided range and a strong fourth-quarter outlook would change that math fast.
So what is Navitas stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
