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Navitas Semiconductor (NVTS): Assessing Valuation After a 150% One-Year Share Price Surge

Simply Wall St · 2d ago

Navitas Semiconductor (NVTS) has been on a quiet tear over the past year, with the stock up more than 150% as investors lean into its gallium nitride and silicon carbide power solutions story.

See our latest analysis for Navitas Semiconductor.

That momentum has cooled a little in the last week, with a slightly negative 7 day share price return. However, the 90 day share price return of 47.81 percent and 1 year total shareholder return of 153.33 percent still point to strong optimism building around Navitas growth story and perceived execution risk easing.

If Navitas has caught your attention, it is worth seeing what else is happening across high growth tech and AI stocks as investors reassess where the next leg of growth in advanced chips and power solutions could come from.

After such explosive gains, a still loss-making Navitas now trades slightly above the average analyst price target. This raises the key question: is this the moment to buy into its long term growth story, or is the market already there?

Most Popular Narrative: 10.2% Overvalued

With Navitas shares last closing at $9.12 against a narrative fair value of $8.28, expectations sit slightly ahead of the underlying model.

The analysts have a consensus price target of $6.738 for Navitas Semiconductor based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $8.0, and the most bearish reporting a price target of just $4.4.

Read the complete narrative.

Curious how a loss making chip designer can still command a premium narrative? The story hinges on steep revenue ramps, margin transformation and a lofty future earnings multiple. Want to see the exact assumptions powering that jump from deep losses to meaningful earnings and a stretched valuation bar?

Result: Fair Value of $8.28 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, lingering revenue softness and market wide inventory corrections could delay Navitas ramp, challenging the lofty growth and valuation assumptions currently embedded.

Find out about the key risks to this Navitas Semiconductor narrative.

Build Your Own Navitas Semiconductor Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom view in just minutes: Do it your way

A great starting point for your Navitas Semiconductor research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.