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Navitas Semiconductor (NVTS)
NASDAQ:NVTS
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Navitas Semiconductor
(NASDAQ:NVTS)
Rating:60Neutral
Price Target:
$5.50
▲(7.84%Upside)
Positive Factors
Financial outlook
The company is tracking to breakeven in the high-30s, which is a positive outlook for its financial health.
Growth potential
NVTS ended the year with $450MM of design wins, with Data Center and EV leading the growth.
Revenue guidance
The June quarter revenue guide was above estimates, providing a slightly positive outlook for future performance.
Negative Factors
Competition
The GaN market is increasingly more competitive with larger players like STMicro, Infineon, and Renesas making inroads via acquisitions and partnerships.
Market headwinds
The company is seeing sharp end-market headwinds and is guiding for a near 40% year-over-year decline in revenue.
Revenue challenges
Revenue for the March quarter was below estimates, indicating potential challenges in growth.
Navitas Semiconductor (NVTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$978.22M
Dividend YieldN/A
Average Volume (3M)34.66M
Price to Earnings (P/E)―
Beta (1Y)1.45
Revenue Growth-16.95%
EPS Growth-2.47%
CountryUS
Employees280
SectorTechnology
Sector Strength81
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.06
Shares Outstanding191,807,790
10 Day Avg. Volume98,214,730
30 Day Avg. Volume34,663,333
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)1.03
Price to Sales (P/S)0.00
P/FCF Ratio-5.46
Enterprise Value/Market Cap0.30
Enterprise Value/Revenue0.82
Enterprise Value/Gross Profit12.30
Enterprise Value/Ebitda-0.72
Forecast
1Y Price Target
$3.63Price Target Upside-28.82% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Navitas Semiconductor Business Overview & Revenue Model
Company DescriptionNavitas Semiconductor Corporation is a leading innovator in the semiconductor industry, specializing in Gallium Nitride (GaN) power integrated circuits. The company is focused on revolutionizing power electronics by providing next-generation, energy-efficient solutions for a wide range of applications including mobile, consumer electronics, data centers, and renewable energy sectors. Navitas' GaNFast power ICs are designed to deliver faster charging, higher power density, and greater efficiency compared to traditional silicon-based semiconductors.
How the Company Makes MoneyNavitas Semiconductor generates revenue through the design, manufacture, and sale of its GaN power ICs. The company's primary revenue streams include selling these advanced semiconductor products to consumer electronics manufacturers, data center operators, and renewable energy companies. Navitas leverages partnerships with key industry players to integrate its technology into a variety of devices and systems, driving adoption and increasing sales. Additionally, the company's focus on innovation and efficiency enables it to maintain competitive pricing and appeal to a broad customer base seeking enhanced performance and sustainability in power management solutions.
Navitas Semiconductor Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q1-2025)
| % Change Since: 155.00%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several significant technological advancements and strategic initiatives, including the first production release of bidirectional GaN ICs, automotive qualifications, and significant commercial EV wins. However, these were tempered by ongoing revenue and gross margin declines, continued softness in key markets, and potential tariff impacts, painting a mixed picture. While there is optimism for future growth driven by new technology and design wins, current financial metrics present challenges.Q1-2025 Updates
Positive Updates
First Production Release of Bidirectional GaN IC
Navitas announced the industry's first production release of a bidirectional GaN IC, a revolutionary technology that reduces traditional two-stage converters into a single stage, enabling significant improvements in size, weight, cost, and power loss by 30% or more.
GaNSafe Technology Automotive Qualification
GaNSafe technology has been automotive-qualified to the challenging AEC-Q101 standard, and Navitas' GaNSafe has been adopted in the industry's first GaN EV onboard charger design with Changan Auto, with expected production in early 2026.
Significant Commercial EV Wins
Navitas announced significant commercial EV wins, expecting a multimillion-dollar impact in 2026, particularly in markets requiring higher power and higher reliability.
12 Kilowatt Design for Data Centers
Navitas announced a new 12 kilowatt design for data centers, an industry-first that is only possible with GaN and silicon carbide technologies, enabling significant increases in rack power.
Strong Pipeline with Over 75 Customer Projects
Navitas has over 75 customer projects in production or development using silicon carbide, GaN, or both, pointing to a strong pipeline for future growth.
Separation of Chair and CEO Roles
Navitas announced board and executive changes, including separating the chair and CEO roles, aiming to accelerate the company's transition to greater scale and profitability.
Negative Updates
Revenue Decline
Revenue for Q1 2025 was $14 million, at the midpoint of guidance, but showed a sequential decline due to seasonality, soft demand, and inventory corrections.
Gross Margin Decline
Gross margin in the first quarter was 38.1%, down from 40.2% in the fourth quarter, primarily due to less favorable market mix.
Continued Softness and Inventory Corrections
Guidance for the second quarter expects revenues to remain in the range of $14 million to $15 million, reflecting continued softness and inventory corrections in solar, EV, and industrial end markets.
Impact of Tariffs
The impact of tariffs, particularly between China and the U.S., remains a risk, with potential adverse effects on silicon carbide revenues in the second half of the year.
Operating Loss
First quarter 2025 loss from operations was $11.8 million, although this was an improvement from the prior quarter.
Company Guidance
In the first quarter of 2025, Navitas Semiconductor's revenue aligned with guidance at $14 million, accompanied by a gross margin of 38%. The company is navigating headwinds due to a slowdown in channel inventory within the electric vehicle (EV), solar, and industrial sectors. However, significant market and product developments are anticipated to foster robust growth in 2026. Notably, Navitas introduced the industry's first production release of a bidirectional GaN IC, expected to enhance single-stage converters, improving size, weight, cost, and power loss by over 30%. Navitas has also achieved AEC-Q101 standard automotive qualification for its GaNSafe technology, marking a milestone in the GaN EV onboard charger design. The company's strategic focus spans various applications, including AI data centers and commercial EVs, with over 75 customer projects currently in production or development. Additionally, the company anticipates revenue in the second quarter to range between $14 million and $15 million, with a slight improvement in gross margin to 38.5%. Operating expenses are projected to decrease to $15.5 million, aligning with the company's plan to streamline operations across its business sectors.Navitas Semiconductor Financial Statement Overview
Summary
Navitas Semiconductor shows promising revenue growth but faces challenges in profitability and cash flow. The balance sheet strength is notable with substantial equity, but operational inefficiencies and cash flow issues persist, indicating a need for strategic adjustments.Income Statement
Navitas Semiconductor has shown consistent revenue growth over the years, with a notable increase from $16.87 million in 2019 to $83.30 million in 2024. However, the company has been operating at a loss, with negative EBIT and net income figures throughout the years, indicating challenges in achieving profitability. The gross profit margin has been relatively volatile, with a recent decline due to increased operational costs. The persistent negative net profit margin reflects ongoing financial challenges.45
Neutral
Balance Sheet
The balance sheet shows strong stockholders' equity, rising from $2.67 million in 2019 to $348.01 million in 2024. However, the company has a low debt-to-equity ratio, indicating low leverage but also potential underutilization of debt financing. The equity ratio is strong, indicating that a significant portion of assets is financed through equity. Despite improvements in equity, there are concerns about asset utilization efficiency and the company's ability to generate returns on equity.50
Neutral
Cash Flow
Navitas Semiconductor has consistently reported negative operating cash flows, indicating operational inefficiencies. Although there is a high free cash flow volatility, the company has managed to keep capital expenditures relatively low. The operating cash flow to net income ratio is concerning, as cash outflows from operations persistently exceed net income losses. The cash flow trends highlight the need for improved operational performance to enhance cash generation.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 83.30M | 79.46M | 37.94M | 23.74M | 11.85M | Gross Profit |
| 28.34M | 31.06M | 11.95M | 10.69M | 3.71M | EBIT |
| -130.68M | -118.13M | -120.99M | -68.51M | -18.80M | EBITDA |
| -66.80M | -97.15M | -123.64M | -67.75M | -18.29M | Net Income Common Stockholders |
| -84.60M | -145.43M | 73.91M | -152.69M | -19.04M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 86.74M | 152.84M | 110.34M | 268.25M | 38.87M | Total Assets |
| 389.98M | 485.55M | 426.90M | 296.08M | 48.51M | Total Debt |
| 7.32M | 8.54M | 6.57M | 6.92M | 5.97M | Net Debt |
| -79.42M | -144.29M | -103.77M | -261.34M | -32.90M | Total Liabilities |
| 41.97M | 104.93M | 40.42M | 230.06M | 120.93M | Stockholders Equity |
| 348.01M | 380.62M | 382.85M | 66.02M | -72.42M |
| Cash Flow | Free Cash Flow | |||
| -65.59M | -44.88M | -49.14M | -43.77M | -20.85M | Operating Cash Flow |
| -58.82M | -40.10M | -44.50M | -41.70M | -20.63M | Investing Cash Flow |
| -9.27M | -5.78M | -107.61M | -3.47M | -215.00K | Financing Cash Flow |
| 3.50M | 88.38M | -5.81M | 274.55M | 53.59M |
Navitas Semiconductor Technical Analysis
Positive
5.10
Price Trends
2.37
Positive
2.66
Positive
2.71
Positive
Market Momentum
0.92
Negative
66.07
Neutral
64.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVTS, the sentiment is Positive. The current price of 5.1 is above the 20-day moving average (MA) of 3.03, above the 50-day MA of 2.37, and above the 200-day MA of 2.71, indicating a bullish trend. The MACD of 0.92 indicates Negative momentum. The RSI at 66.07 is Neutral, neither overbought nor oversold. The STOCH value of 64.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVTS.
Navitas Semiconductor Risk Analysis
Navitas Semiconductor disclosed 47 risk factors in its most recent earnings report. Navitas Semiconductor reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
We employ modeling techniques to support the valuation of our accounts receivable and to project the timing and amount of expected collections. While these models are designed to provide reliable insights, they involve certain inherent risks, especially if any assumptions or inputs prove inaccurate, incomplete, or less indicative of future outcomes than anticipated. Q3, 2024
2.
We depend on a few key distributors and the loss of one or more of these distributors could have a material adverse effect on our business, financial condition and results of operations. Q3, 2024
Navitas Semiconductor Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $344.21M | 22.86 | 23.57% | 5.62% | -13.18% | -12.06% | |
61 Neutral | $11.50B | 10.46 | -6.94% | 2.94% | 7.57% | -9.03% | |
60 Neutral | $978.22M | ― | -26.43% | ― | -16.95% | -2.47% | |
57 Neutral | $355.90M | ― | -4.71% | ― | -4.77% | 84.82% | |
53 Neutral | $748.02M | ― | -24.12% | ― | 2.66% | -11.35% | |
51 Neutral | $563.16M | ― | -32.43% | ― | -7.09% | -53.23% | |
45 Neutral | $185.20M | ― | -180.49% | ― | -9.62% | -30.36% |
* Technology Sector Average
Performance Comparison
NVTS
Navitas Semiconductor
5.10
0.99
24.09%
WOLF
Wolfspeed
1.19
-25.63
-95.56%
NVEC
NVE
71.16
-1.52
-2.09%
LASR
nLIGHT
15.13
2.48
19.60%
INDI
indie Semiconductor
2.65
-4.90
-64.90%
XPER
Xperi Inc
7.79
-0.54
-6.48%
Navitas Semiconductor Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
Navitas Partners with Nvidia for Data Center Innovation
Positive
May 27, 2025
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.
The most recent analyst rating on (NVTS) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Navitas Semiconductor stock, see the NVTS Stock Forecast page.
Executive/Board ChangesBusiness Operations and Strategy
Navitas Semiconductor Appoints Cristiano Amoruso as Director
Positive
May 14, 2025
On May 8, 2025, Navitas Semiconductor appointed Cristiano Amoruso as a director, effective immediately, with his term expiring at the 2025 annual stockholders’ meeting. Amoruso, who has a strong background in the semiconductor and renewable energy industries, is expected to contribute significantly to Navitas’ growth strategy and corporate governance, aiming to capture a multi-billion dollar market opportunity and accelerate the company’s path to profitability.
The most recent analyst rating on (NVTS) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Navitas Semiconductor stock, see the NVTS Stock Forecast page.
Executive/Board ChangesBusiness Operations and Strategy
Navitas Semiconductor Announces Leadership Restructuring
Neutral
Apr 29, 2025
On April 23, 2025, Navitas Semiconductor announced significant changes in its board and leadership structure, including the resignation of CEO Gene Sheridan as Chair of the Board and the appointment of Richard J. Hendrix as the new Chair. The company also accepted the resignation of Daniel M. Kinzer from his executive roles, while forming an Executive Steering Committee to oversee strategic initiatives. These changes reflect Navitas’ commitment to enhancing corporate governance and aligning its strategies with stockholder interests, aiming to capitalize on market opportunities and drive growth in the power semiconductor industry.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.