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1. Company Snapshot

1.a. Company Description

Navitas Semiconductor Corporation designs, develops, and sells gallium nitride (GaN) power integrated circuits in China, the United States, Taiwan, Korea, and internationally.The company was incorporated in 2013 and is based in Dublin, Ireland.

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1.b. Last Insights on NVTS

Navitas Semiconductor Corporation's recent performance was negatively impacted by weak Q2 results, including a 29% drop in revenue, and a soft outlook. The company's second-quarter 2025 performance suffered from muted revenue growth and margin pressure. Additionally, a loss of $0.05 per share was reported, in line with expectations. Despite new deals with NVIDIA and Powerchip, investors are concerned about falling revenue, rising losses, and mounting risks. A CEO shakeup has also contributed to investor doubts.

1.c. Company Highlights

2. Navitas Semiconductor's Strategic Pivot Drives Q3 2025 Results

Navitas Semiconductor reported Q3 2025 revenue of $10.1 million, in line with the midpoint of guidance. Gross margin stood at 38.7%, up from 38.5% in Q2 2025. Operating expenses were reduced to $15.4 million, and the company reported a loss from operations of $11.5 million. The EPS loss was $0.05, which matched analyst estimates. Cash and cash equivalents stood at $151 million, with no debt, providing a stable financial foundation.

Publication Date: Nov -29

📋 Highlights
  • Strategic Pivot to High-Power Markets:: Navitas 2.0 is shifting focus from consumer/mobile to AI data centers, performance computing, energy, and grid infrastructure, with GaN and high-voltage SiC technologies driving growth.
  • Q3 2025 Financials:: Revenue of $10.1M met guidance, gross margin rose to 38.7% (up from 38.5% in Q2), while operating expenses dropped to $15.4M, leaving a $11.5M operational loss.
  • Q4 2025 Outlook:: Revenue expected to fall to $7M due to deprioritizing low-margin China mobile business and inventory adjustments, but operating expenses will drop to $15M (-24% YoY).
  • Partnership Validation:: Named NVIDIA’s power selector partner for 800V DC AI factory architecture, sampling 2.3kV/3.3kV SiC modules, and expanding GaNFast offerings for high-voltage applications.

Financial Performance and Guidance

For Q4 2025, Navitas expects revenue to decline to $7 million, largely due to the strategic decision to deprioritize its low-power, lower-profit China mobile business and efforts to level set channel inventory. Gross margin is expected to remain relatively flat at 38.5%. Operating expenses will be further trimmed to $15 million, a 24% year-over-year reduction. The company expects Q4 to mark the bottom for revenue, with gradual growth anticipated throughout 2026 as it pivots towards high-power markets.

Strategic Pivot and Growth Prospects

Navitas is undergoing a significant transformation, dubbed Navitas 2.0, focusing on high-power markets such as AI data centers, performance computing, energy, and grid infrastructure. The company is leveraging its expertise in GaN and high-voltage SiC technologies to drive growth. The partnership with NVIDIA as a power selector partner for its next-generation 800-volt DC AI factory power architecture is a significant validation of Navitas' capabilities. As CEO Chris Allexandre noted, the company is positioned to benefit from the growth in these high-power segments, with a focus on hyperscalers, GPU vendors, and Tier 1 OEM and ODM.

Valuation and Growth Expectations

With a P/S Ratio of 33.36 and an EV/EBITDA of -18.81, the market is pricing in significant growth expectations. Analysts estimate revenue growth to be -21.5% for the next year, indicating a challenging near-term outlook. However, Navitas expects its strategic pivot to drive high-quality business with greater predictability and higher margins, potentially leading to accelerated growth in 2027 with the adoption of 800-volt DC in data centers.

Operational Efficiency and Cash Position

Navitas has been optimizing its operations, resulting in lower quarterly operating expenses. The company's cash position remains healthy, with $151 million in cash and no debt. The quarterly burn rate is around $10-11 million, and Navitas believes it has sufficient resources to ramp growth and meet next-gen data center demand.

3. NewsRoom

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This Semiconductor Stock Is Up 165% in 2025. 1 Reason This Could Be Just the Beginning.

Dec -05

Source: fool.com

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NVTS Deepens Global Partnerships: Will This Fuel Long-Term Gains?

Dec -04

Source: zacks.com

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Creative Planning Grows Position in Navitas Semiconductor Corporation $NVTS

Dec -02

Source: defenseworld.net

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Navitas Announces 3300V and 2300V UHV Silicon Carbide Product Portfolio, Augmenting Reliability and Performance in Mission-Critical Energy Infrastructure Applications

Dec -01

Source: globenewswire.com

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Here's Why Nvidia Partner, Navitas Semiconductor powered higher This Week

Nov -29

Source: fool.com

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Navitas Consolidates Asian Distribution, Signs Strategic Distribution Partnership with WT

Nov -27

Source: globenewswire.com

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10 AI Stocks I'd Buy Right Now

Nov -27

Source: fool.com

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Envestnet Asset Management Inc. Takes $421,000 Position in Navitas Semiconductor Corporation $NVTS

Nov -27

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.43%)

6. Segments

Integrated Circuits and Related Components

Expected Growth: 10.43%

Navitas Semiconductor Corporation's Integrated Circuits and Related Components segment growth of 10.43% is driven by increasing demand for energy-efficient solutions, adoption of 5G and IoT technologies, and rising electrification in the automotive industry. Additionally, the company's focus on gallium nitride (GaN) technology and strategic partnerships contribute to its growth momentum.

7. Detailed Products

GaN Power ICs

Navitas Semiconductor Corporation's GaN Power ICs are high-performance, high-power semiconductor devices that enable fast charging, high-power density, and high-efficiency power conversion in a wide range of applications.

GaNs FETs

Navitas' GaNs FETs are high-performance, high-power semiconductor devices that offer high switching frequencies, low losses, and high reliability in a wide range of applications.

ICs for Wireless Charging

Navitas' ICs for Wireless Charging enable fast, efficient, and reliable wireless power transfer in a wide range of applications, including consumer electronics and automotive systems.

Power ICs for Data Centers

Navitas' Power ICs for Data Centers are high-performance, high-power semiconductor devices that enable high-efficiency power conversion, high-power density, and high-reliability in data center applications.

GaN-based Motor Drive ICs

Navitas' GaN-based Motor Drive ICs are high-performance, high-power semiconductor devices that enable high-efficiency, high-reliability, and high-power density in motor drive applications.

8. Navitas Semiconductor Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Navitas Semiconductor Corporation is medium due to the presence of alternative technologies and products in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of major customers in the industry, giving them significant negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of multiple suppliers and the company's significant purchasing power.

Threat Of New Entrants

The threat of new entrants is medium due to the significant barriers to entry, including high capital requirements and technological expertise.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market, leading to intense competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.20%
Debt Cost 3.95%
Equity Weight 97.80%
Equity Cost 16.45%
WACC 16.18%
Leverage 2.25%

11. Quality Control: Navitas Semiconductor Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Navitas Semi

A-Score: 4.3/10

Value: 6.2

Growth: 6.4

Quality: 3.8

Yield: 0.0

Momentum: 9.5

Volatility: 0.0

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Seco

A-Score: 3.9/10

Value: 4.3

Growth: 4.9

Quality: 2.8

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

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Alphawave IP

A-Score: 3.6/10

Value: 4.6

Growth: 5.1

Quality: 1.6

Yield: 0.0

Momentum: 9.5

Volatility: 1.0

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SEALSQ

A-Score: 3.5/10

Value: 6.2

Growth: 1.3

Quality: 3.4

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

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Magnachip Semiconductor

A-Score: 2.7/10

Value: 9.8

Growth: 1.2

Quality: 2.9

Yield: 0.0

Momentum: 1.0

Volatility: 1.0

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IQE

A-Score: 2.3/10

Value: 9.6

Growth: 1.2

Quality: 1.7

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.48$

Current Price

9.48$

Potential

-0.00%

Expected Cash-Flows