The Navitas shares are great after income.
The figures look bad: falling income, larger losses and weak guidance.
But behind the scenes, Navitas has partnerships with Nvidia, Dell and Lenovo … and a game on AI data centers that could change the game.
The deployment is huge: if they perform, this could be one of the largest semiconductor in the decade.
And today I will break it all: the share price, the financial data, the catalysts and the risks, so that you know exactly where Navitas is now.
Company overview
Navitas is a PUUR Power Semiconductor Company founded in 2014 by Gene Sheridan, the current CEO, Stephen Oliver and Dan Kinzer. The company makes Gallium Nitride (GAN) and Silicon Carbide (SIC) based technology for electric vehicles, mobile phones, solar panels and data centers.
And here is the thing: semiconductors are now the backbone of every megatrend, and Navitas gambles on the supplier of “picks and kicking” for that growth.
In 2016, Navitas debuted his first gallium-nitride-based Power Integrated Circuit (IC), one of the world’s first ICs that fully integrated important functions and components into a single monolithic chip.
The value in Gallium Nitride-based power ICS is that they have faster switching speeds and have a lower on-resistance, resulting in higher efficiency and lower temperatures. They also take up less space because they are in one piece.
One of the most famous GAN-based Power ICs from Navitas is their Ganfast Power IC, which is said to charge 3x faster in half of the size and weight of traditional chips on silicone, with a maximum of 40% better energy efficiency. These electricity –ic’s are used in mobile chargers, laptop chargers, feeds in data centers, tanning features and EVs.
Navitas’ customers are Dell, Lenovo, Nvidia and Xiaomi – that is proof that they have already earned the confidence of Big Tech.
Share price
That is out of the way, let’s go into the juicy parts, starting with the share price of the company.
The last time I rated Navitas was around July 18, when the share was around $ 6.20. This was a few days before the price was up to almost $ 9.
Things are now different now.
After that short price peak, the stock prices fell again, especially after 4 August, when the company released its Q2 Financial data. We will talk more about that later. Navitas closed at $ 8.05 on August 4 and then closed the next day at $ 6.35 – that is a decrease of more than 20% in 24 hours.
That kind of swing tells you one thing: investors are nervous.
Nevertheless, the share acts higher than a year ago. It has risen 114% in the last 52 weeks, while the year-to-date return is still quite high at 80%.
So, Navitas had a pretty solid upward route before the financial data was released.
That raises the question: what exactly happened there?
Financial
According to their Q2 FY’25 Financial Report, Navitas reported a fall in turnover of 29% on an annual basis from $ 20.5 million to $ 14.5 million.
Net losses also more than doubled – from 12 cents per share to 25 cents per share year after year. That is not exactly encouraging news for shareholders.
In the meantime, the third -quarter guidelines provide around $ 10 million in sales.
For reference, the turnover of Q3 2024 came about $ 21.6 million, so if the Q3 guidelines come out, that year after year it will be a 54% decrease. And when the income collapses so quickly, you should ask which management does not tell us?
So yes, I would say that inventors had a few good reasons to sell the shares once the Q2 numbers were released.
Growth catalysts
However, it is not all downfall and gloom for the company. Although Navitas earned less this year compared to last year, various factors could stimulate growth in the coming years.
NVIDIA partnership
Until now, the most important catalyst for growth is his partnership with Nvidia. In May 2025, Navitas announced that it collaborated with Nvidia to provide its next generation 800V HVDC AI centers.
The 800-V High voltage Direct Current (HVDC) Data centers will to use An improved architecture that reduces coper requirements, improves efficiency, increases reliability, reduces cooling requirements and reducing maintenance costs by 70%.
That is not just an upgrade, that is a reinvestment of how data centers run.
If it makes his promise, Navitas could be placed for a large turnaround.
Angle
The GAN chips of the company also mean not only lower costs for customers -they also reduce the environmental impact of data centers, which we recently discussed in my Discord channel.
The electricity story of data centers is expected to grow 300% in the following decade.
The US Department of Energy Estimate about the same growth, but at a faster pace – with double or triple use by 2028.
Data centers also use a lot of water, with greater estimate of up to 5 million gallons one day.
With Navitas technology, data centers and other computer compositions can achieve a higher power efficiency on a massive scale, which in turn reduces their electricity and water consumption, plus reduces them General CO2 footprint.
For most companies today that is a double benefit. She received reduced costs, more money for improvements, And Improved ESG scores, which can be important factors in attracting Investors.
If you can save money And Boost ESG scores, you not only sell chips, you are reputation of sales, and that is priceless in the current market.
Risks
Of course not everything is smooth sailing for Navitas. There are some risks involved. Here most investors are blinded by the disadvantage.
Income
The most enormous red flag about the company is the falling income. Here is a quick look at the sale of the company in the past five quarters.
In the meantime, the losses are also increasing, which is never a good sign.
And while Navitas has justified their pivot to AI Power Infrastructure and the potential Chinese rates, their expectations for Q3 are still very conservative.
The outlook suggesting that management paves expectations despite the AI story, which has currently been more than enough to stimulate some companies on the market. Declining income plus weak guidelines is a double hit, and that is exactly when Wall Street loudly punishes.
As it looks now, I have to see clearer signs of income stabilization, or at least a clear path to that goal before I remove this risk from my analysis.
Tax credits / go away from green energy
Navitas also takes a hit of Removing the tax credits for the solar and EV industry”
How do EV and green energy problems influence navitas? Of course, the company is not a solar or EV company – but many of its customers do.
Navitas actually feeds a lot of solar and EV products with their GAN ICS. There is A company that develops power electronics for electric vehicles, produces built-in chargers and DC-DC converters using Navitas’ Gan Power ICS.
With the removal of tax credits, requirements from EV and solar manufacturers can be bags and consumers may be less willing to buy solar and EV products. And when requirements disappear, Navitas can be caught in a downdraft.
Chinese rates
And then there is the risk that in many of my analyzes: the rates.
The continuous trade tensions with China are a considerable risk of Navitas. China is one of the largest markets for electronics, including mobile fast chargers. Rates for Chinese electronics can influence the prices of products built with Navitas chips, so that the total demand may be mitigated.
In addition, Navitas has exposure to the Chinese EV market through its collaboration with car manufacturer Changan. The Chinese automaker uses the Gansafe technology of Navitas for its recently announced on board chargers.
If rates escalate or limitations become tighter, Navitas can be confronted with a triple Whammy: weaker demand for consumer electronics, slower acceptance in electric vehicles, And Supply Chain problems.
I have been on the market long enough to know that one bad cup of months of share profit can erase; That is how fragile sentiment is here.
Appreciation / judgment
But what do the figures say about the current price of Navitas?
From the moment of admission, Navitas acts with a price sales ratio of 15.89-the highest of the closest competitors. It is almost triple the next highest p/s -ratio of power integrations – and that company is already profitable.
This is relatively high, even given the exposure to AI. This means that investors at the current level prices in considerable future growth with very little room for missteps.
In the meantime, analysts have steadily reduced their reviews on Navitas, with the latest scores round of an average of 3.44, which is located on the lower edge of a moderate buy -rating. And when Wall Street analysts start to lower the bar, this usually means pain for store investors who have bought the hype.
Earlier I also assessed Navitas a ‘soft buy’, who leaned more to a ‘hold’. With the Q2 -Financial data while they are, I downgrade my assessment into a complete handle.
Don’t get me wrong. Navitas’s technology is very cool and has a lot of potential to save customers money. However, macroeconomic factors and deteriorating top performance create too much risk and uncertainty for me to give it a buy-rating.
For cautious investors, it would be advisable to wait until Navitas releases his next generation of technology before he invests.
But what is your opinion about Navitas? Do you keep, buy or do you release your shares?
#Navitas #shares #rose #rally