Navitas Semiconductor (NVTS) AI Stock Analysis

• Market Cap: $1.18B
• Dividend Yield: N/A
• Average Volume (3M): 19.78M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: -25.65%
• EPS Growth: -130.95%
• Country: US
• Employees: 280
• Sector: Technology
• Sector Strength: 83
• Industry: Semiconductors
• EPS (TTM): -0.05
• Shares Outstanding: 213,107,280
• 10 Day Avg. Volume: 11,467,605
• 30 Day Avg. Volume: 19,783,509
• PEG Ratio: 0.17
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 7.82
• P/FCF Ratio: -9.93
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 15.50
• Enterprise Value/Gross Profit: 39.77
• Enterprise Value/Ebitda: -10.80
• 1Y Price Target: $7.10
• Price Target Upside: 26.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 52 Neutral
• Price Target: $6.50 ▲(16.07% Upside)

Navitas Semiconductor's overall score reflects a challenging financial performance with profitability issues and negative cash flows. Despite bearish technical indicators and a weak valuation, strategic initiatives in AI data centers and leadership changes provide potential for future growth.

Positive Factors

Financial Outlook

The company is tracking to breakeven in the high-30s, which is a positive outlook for its financial health.

Leadership Change

Chris Allexandre appointed as President and CEO, bringing deep experience from Renesas.

Negative Factors

Market Competition

The GaN market is becoming more competitive with STMicro, Infineon, and Renesas making significant inroads through acquisitions and partnerships.

Revenue Forecast

Revenue estimates for Navitas have been revised down for 2025-2026, now significantly below street expectations due to lower ASP assumptions.

Revenue Growth

Navitas reported inline results but offered guidance that came in well below the Street's expectations.

Navitas Semiconductor Business Overview & Revenue Model

Company Description

Navitas Semiconductor (NVTS) is a leading company in the semiconductor industry, specializing in the design and development of next-generation power electronics. The company focuses on gallium nitride (GaN) technology, which is used to create high-efficiency power converters and systems. Navitas' products are utilized in a wide range of applications, including mobile devices, consumer electronics, electric vehicles, and renewable energy systems, offering improved energy efficiency, reduced system size, and enhanced performance compared to traditional silicon-based solutions.

How the Company Makes Money

Navitas Semiconductor generates revenue primarily through the sale of its GaN-based power semiconductors and related products. The company's key revenue streams include direct sales to manufacturers and suppliers in various sectors such as consumer electronics, automotive, and renewable energy. Additionally, Navitas may engage in partnerships and collaborations with other technology firms to expand its product offerings and market reach. Licensing agreements and technology partnerships can also contribute to its earnings by providing access to new markets and applications for GaN technology. These factors, combined with ongoing innovation and product development, help Navitas Semiconductor to maintain its competitive position and drive revenue growth.

Navitas Semiconductor Financial Statement Overview

Summary

Navitas Semiconductor faces significant profitability challenges with negative income metrics and volatile revenue trends. The balance sheet is a strength, with low leverage and strong equity, but negative cash flows highlight the need for improved operational efficiency and revenue stabilization.

Income Statement

Navitas Semiconductor has shown a mixed performance in the income statement. The TTM data indicates a decrease in total revenue and gross profit, while the gross profit margin stands at approximately 39.0%, which is reasonable. However, the persistent negative net income and declining EBIT and EBITDA margins highlight ongoing profitability challenges. Revenue growth rate has been volatile, with a recent decline, signaling potential issues in maintaining consistent growth.

Balance Sheet

The balance sheet reflects a strong equity position with a healthy equity ratio of around 92.1%. The company has managed its leverage well with a low debt-to-equity ratio of approximately 0.02. However, the overall trends in total assets and liabilities suggest a need for cautious financial management to maintain stability.

Cash Flow

Cash flows indicate challenges with negative operating cash flow and free cash flow, impacting liquidity. The free cash flow growth rate has fluctuated, posing risks to financial flexibility. Nonetheless, the company maintains a positive cash balance, providing some buffer against short-term financial pressures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	74.14M	83.30M	79.46M	37.94M	23.74M	11.85M
Gross Profit	28.91M	28.34M	31.06M	11.95M	10.69M	3.71M
EBITDA	-106.43M	-66.80M	-97.15M	-109.90M	-67.75M	-18.29M
Net Income	-97.75M	-84.60M	-145.43M	73.91M	-152.69M	-19.04M
Balance Sheet
Total Assets	370.83M	389.98M	485.55M	425.26M	295.60M	48.51M
Cash, Cash Equivalents and Short-Term Investments	75.13M	86.74M	152.84M	110.34M	268.25M	38.87M
Total Debt	6.88M	7.32M	8.54M	6.57M	6.92M	5.97M
Total Liabilities	29.01M	41.97M	104.93M	40.50M	230.06M	120.93M
Stockholders Equity	341.82M	348.01M	380.62M	381.13M	65.54M	-72.42M
Cash Flow
Free Cash Flow	-56.49M	-65.59M	-44.88M	-49.14M	-43.77M	-20.85M
Operating Cash Flow	-52.57M	-58.82M	-40.10M	-44.50M	-41.70M	-20.63M
Investing Cash Flow	-3.91M	-9.27M	-5.78M	-107.61M	-3.47M	-215.00K
Financing Cash Flow	2.42M	3.50M	88.38M	-5.81M	274.55M	53.59M

Navitas Semiconductor Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.60
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVTS, the sentiment is Neutral. The current price of 5.6 is below the 20-day moving average (MA) of 6.34, below the 50-day MA of 6.77, and above the 200-day MA of 4.14, indicating a neutral trend. The MACD of -0.36 indicates Positive momentum. The RSI at 35.62 is Neutral, neither overbought nor oversold. The STOCH value of 10.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NVTS.

Navitas Semiconductor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVEC	74 Outperform	$315.67M	21.72	23.09%	5.99%	-9.22%	-13.57%
LASR	62 Neutral	$1.47B	―	-20.63%	―	9.79%	10.28%
Sector *	61 Neutral	$35.52B	8.84	-11.06%	1.87%	8.55%	-8.14%
INDI	55 Neutral	$925.22M	―	-36.20%	―	-7.49%	-64.33%
NVTS	52 Neutral	$1.18B	―	-32.05%	―	-25.65%	-130.95%
XPER	46 Neutral	$278.49M	―	-0.92%	―	-6.09%	97.33%
WOLF	41 Neutral	$194.03M	―	-739.86%	―	-6.14%	-63.68%

Navitas Semiconductor Corporate Events

Navitas Semiconductor Appoints New CEO Amid Leadership Transition

Navitas Semiconductor announced the appointment of Chris Allexandre as President and CEO, effective September 1, 2025, succeeding founder Gene Sheridan. Allexandre’s extensive experience in the semiconductor industry positions Navitas for growth in AI data centers and energy infrastructure markets. Sheridan will assist in the transition, ensuring stability and continuity. The company also confirmed its financial guidance for the third quarter of 2025, maintaining market confidence during this leadership transition.

Navitas Semiconductor Stockholders Approve Key Proposals

At the 2025 annual stockholders’ meeting on July 8, 2025, Navitas Semiconductor‘s stockholders approved three key proposals. The proposals included the reelection of board members, an advisory approval of executive compensation, and the ratification of KPMG LLP as the independent auditor for 2025, reflecting continued shareholder support for the company’s governance and financial oversight strategies.

Navitas Semiconductor Raises $50 Million in Stock Sale

Navitas Semiconductor Corporation completed the sale of shares of its Class A common stock under its at-the-market offering program, raising $50 million. This follows a previous $50 million sale under a similar program. The proceeds are intended for working capital, general corporate purposes, and potential acquisitions, though no specific agreements are currently in place.

Navitas Semiconductor Plans GaN Wafer Source Diversification

Navitas Semiconductor announced plans to diversify its GaN wafer sources following TSMC’s decision to cease GaN production by July 2027. In collaboration with Powerchip Semiconductor Manufacturing Corporation, Navitas aims to transition its 650 V GaN devices within 12-24 months, with initial mass production of 100 V GaN products expected in the first half of 2026. This strategic partnership is anticipated to strengthen Navitas’ supply chain, drive innovation, and improve cost efficiency, supporting its expansion into AI data centers, EVs, and other markets.

Navitas Partners with Nvidia for Data Center Innovation

On May 21, 2025, Navitas Semiconductor announced a collaboration with Nvidia to develop an 800V HVDC architecture for data centers, aimed at improving power efficiency and reducing infrastructure complexity. This partnership highlights Navitas’ role in advancing AI data center technology through its GaN and SiC innovations, which are expected to enhance Nvidia’s next-generation AI workloads by offering scalable and efficient power solutions.