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Is Navitas Semiconductor (NVTS) Trading Near-Term Revenue For Higher-Value AI Power Leadership?

Simply Wall St · 3d ago
  • In recent days, Navitas Semiconductor Corp. announced a refocus on higher-power customers and revenue, streamlining its distribution network and working down channel inventory while guiding to lower revenue as it deprioritizes lower-power and certain China mobile and consumer activities.
  • This shift highlights management’s emphasis on aligning the business more closely with higher-value applications, particularly those linked to artificial intelligence and other advanced power markets.
  • We’ll now examine how Navitas’ move toward higher-power markets and a leaner distribution model could influence its existing investment narrative.

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Navitas Semiconductor Investment Narrative Recap

To own Navitas, you generally need to believe in gallium nitride and higher power markets such as AI data centers, EVs, and industrial power as long term value drivers. The recent pivot toward higher power customers and away from lower power China mobile and consumer activity sharpens that focus, but it also reinforces that the most immediate catalyst and the biggest risk now lie in how quickly the company can replace declining legacy revenue with higher value projects.

Management’s latest guidance for Q4 2025, calling for about US$7.0 million in revenue due to deprioritization of low power and certain China consumer segments, is the clearest tie to this shift. It directly connects the current revenue reset to the longer term push into higher power opportunities in AI data centers, EV, solar, and industrial markets, and frames how investors might weigh short term softness against the existing backlog and pipeline of design wins.

Yet behind the higher power opportunity, investors should also be aware of the ongoing softness and inventory corrections in key end markets such as...

Read the full narrative on Navitas Semiconductor (it's free!)

Navitas Semiconductor's narrative projects $129.8 million revenue and $18.3 million earnings by 2028. This requires 23.9% yearly revenue growth and a $142.8 million earnings increase from $-124.5 million today.

Uncover how Navitas Semiconductor's forecasts yield a $8.28 fair value, a 9% downside to its current price.

Exploring Other Perspectives

NVTS 1-Year Stock Price Chart
NVTS 1-Year Stock Price Chart

Simply Wall St Community members place Navitas’ fair value anywhere from US$2.13 to US$38.22 across 11 independent views, underscoring wide disagreement. Against that backdrop, the company’s planned cost cuts and focus on higher power markets sit alongside continued revenue softness and inventory corrections that could influence how those views evolve, so it is worth weighing several perspectives before forming your own.

Explore 11 other fair value estimates on Navitas Semiconductor - why the stock might be worth over 4x more than the current price!

Build Your Own Navitas Semiconductor Narrative

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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.