Navitas Semiconductor: Innovation or Hype?

Navitas Semiconductor just partnered with Nvidia… the world’s first $4 trillion company.

And that one sentence sent this tiny stock soaring over 300% off its lows.

But here’s what no one’s telling you.

Navitas has bleeding financials, shaky revenue, and insiders have been selling like the party’s over.

Yet, its tech could be the missing link in EVs, AI data centers, and the entire clean energy transition.

So is this the real deal? Or just another overhyped penny stock riding the AI wave?

Navitas Overview

Navitas was founded as a pure-play power semiconductor company in 2014. Currently, the company’s target market includes EV makers, data centers, solar energy companies, industrial clients, and mobile and consumer electronics firms. 

In 2016, Navitas debuted its first Gallium Nitride-based power integrated circuit, or IC, one of the world’s first to fully integrate key functions and components onto a single chip. 

For those unfamiliar, ICs manage and control the flow of electrical power within a device. ICs can be found in everything from your bedside phone charger to the massive data centers that power our modern world. 

Navitas’ Gallium Nitride or GaN power ICs offer several advantages over traditional silicon-based power ICs. First, it has faster switching speeds, which result in higher efficiency and lower operating temperatures. GaN ICs also provide higher power density, a lower carbon footprint, smaller physical space requirements, and a far wider integration potential than silicon ICs.

The US Department of Energy estimates that data centers will account for up to 580 Terawatt-hours or 12% of total annual electricity consumption by 2028. So it isn’t a stretch to say that any measure that can help reduce data center power consumption will be highly attractive to businesses and governments alike. 

Of course, Navitas also produces GaN and silicon carbide MOSFETs, drivers, modules, and other power components. 

Recent Stock Performance

Now, I’m going to take a quick look at NVTS’s stock performance as well as its financials and other metrics.

As for the stock price, well, NVTS stock is been massively volatile; it reached an all-time high of $22.19 in November 2021, but has traded between the $2 and $11 level for most of 2022 to 2024, then finally fell to an all-time low of $1.52 in April 2025. 

But since then, the stock has surged upward and is now trading at $6.27, or an over 312% improvement on its all-time low

Financial Snapshot

Let’s switch gears and look at Navitas’ recent financials. 

The company’s annual revenue has been growing since 2020, with 2024 financials reporting $83.3 million in sales, its top line, representing a nearly 5% increase from 2023. For a growing company, that’s okay, but not great, especially when you consider the company grew sales 109% in the previous year. 

The bottom line tells us another story. The company has consistently reported losses since 2020, except in 2022, when it generated $173 million in non-operating income. 

Now, if we take 2022 out of the equation, Navitas’ losses are trending downward, with 2024 losses shrinking by almost 42% year over year. 

But it’s a different story when you look at their quarterly reports. In Q1 2025, the company saw a nearly 40% drop in revenue, hardly the result you’d want to see from a scaling business

The drop may have been caused by seasonal slowdowns in the EV, solar, and industrial markets. However, although they didn’t outright state it in their filings, which is probably a rookie mistake, but, yeah, I suspect that US President Donald Trump’s anti-EV and anti-renewable energy stance – two of Navitas’ biggest target markets – has something to do with it. 

Growth Catalysts

Still, the company’s financial performance may improve in the future. So let’s talk about what tailwinds can push it higher. 

Nvidia Partnership

In May 2025, Navitas announced a partnership with Nvidia to supply GaN components for its next-generation 800V AI data centers. This deal is seen as a major validation of Navitas’ technology and has driven renewed investor interest.

It also recently announced another partnership, this time with Powerchip Semiconductor Manufacturing Corporation in Taiwan, to develop and produce 200mm GaN-on-silicon technology for use in EV on-board chargers, inverters, smartphone chargers, and satellite and network communications infrastructure. 

Strategic partnerships like these may lead to other deals in the future, not only with Nvidia but with other tech giants. Though that’s primarily dependent on how well Navitas delivers on its current deals. 

Pure-Play & Tech Superiority

Next, Navitas’ position as the primary provider of monolithic GaN and silicon carbide (SiC) power components lends it significant traction with major tech companies. Not only that, its pure-play strategy gives it significantly better optics than newer or more diversified competitors. The company can – and has – aggressively push its technology into next-gen territory, and its focus on its relatively narrow product line allows it to scale and innovate with speed, precision, and a level of specialization that other companies simply cannot match. 

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And because of these catalysts, well at least in part, Wall Street analysts are quite optimistic about its earnings prospects in 2025 and 2026.

Financial Weakness

As mentioned earlier, the company’s financial performance has been a bit underwhelming in the past couple of quarters. And, despite the Nvidia deal in May, the company estimates that it will only reach between $14 and $15 million in revenue in Q2 2025, which leaves it flat or just slightly above Q1 2025’s numbers.

For reference, Q2 2024’s revenue target is $20.47 million – quite a stretch from its current target. 

Its operating cash flow is also moving further and further into negative territory. This may be seen as a sign of operational inefficiency, and the company may need to raise additional capital to sustain its business. 

Increased Competition

Then, we’ll have to consider the company’s competitive landscape. Currently, Navitas is competing with Wolfspeed, Power Integrations, and Texas Instruments in the SiC and GaN materials market. 

While Navitas appears to have a technological edge over the others, especially with its high-profile Nvidia deal, top billings in the stock market don’t last forever. The company will need to back up the hype with continued innovation and consistent, sustainable performance. Otherwise, Navitas can get left behind. 

Increased Insider Selling

Lastly, there has been a recent uptick in insider selling, which we’ve talked about in my Discord channel. 

Over the last 12 months, there have been 40 separate sell orders from insiders. What’s worrying is that of those 40, 25 instances happened in the last three months. 

Now, insider selling isn’t inherently bad. However, the increasing volume might mean that executives believe the tailwinds are fully priced in, so they’re cashing out while sentiment is high. 

So while insider selling isn’t an exact measure of bearishness, I suggest you keep your eye on it. 

Verdict

With all the pros and cons laid out on the table, my final recommendation for navitas stock is a soft buy, leaning more towards a hold than a moderate buy. 

The company’s offerings are certainly exciting, especially given the accelerating demand for data centers, as well as its prospects in the EV and renewables space. However, its financials are just ok, they have an accelerating cash burn, and increased insider trading raise legitimate concerns about its near-term performance. 

So, what do you think about Navitas Semiconductor? Are you buying into their story? Do you have other AI-related stocks you want me to cover? Let me know in the comments below, and while you’re down there, leave a like and share if you found this analysis helpful.