Is Navitas Semiconductor Stock a Buy Now?

• Navitas is transitioning distant from its halfway concern with China to prosecute markets specified arsenic AI.

• The company's banal has much than doubled successful 2025 arsenic it makes steps toward its transformation.

• Navitas is unprofitable, and gross plunged implicit 40% successful 2025 compared to the erstwhile year.

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The advent of artificial quality (AI) has boosted the fortunes of galore companies successful the semiconductor industry. This includes Navitas Semiconductor (NASDAQ: NVTS), which saw its shares soar implicit 100% successful 2025 done the week ended Dec. 19.

The emergence of Navitas banal has been astounding. It began 2025 nether $4 per share, but arsenic the twelvemonth progressed, it yet deed a 52-week precocious of $17.79 successful October. The stock terms has fallen since past to astir $7.50.

Could this crisp terms driblet awesome a bargain opportunity? Or bash reasons beryllium to clasp disconnected astatine this time? Let's dive into the institution to find out.

Navitas focuses connected semiconductors utilized successful devices for powerfulness conversion and charging, specified arsenic laptops, mobile phones, electrical vehicles, and information centers. It was a pioneer successful gallium nitride power-integrated circuits, which helps it differentiate from the contention done faster charging, higher powerfulness density, and greater vigor savings compared to silicon-based powerfulness systems.

The emergence of electrical vehicles, renewable vigor sources, and artificial quality person created opportunities for gross growth, fixed the anticipated powerfulness request successful these sectors. To capitalize connected the trends, Navitas decided to marque cardinal changes to its business.

The institution is shifting its absorption distant from the mobile and user markets successful China, which accounted for a important 60% of merchandise gross successful 2024, and toward what it considers high-growth markets, specified arsenic information centers designed for AI.

Because of this transition, Navitas took a gross deed successful 2025 arsenic it allowed existing inventory to merchantability down. Through the archetypal 3 quarters of the year, income were $38.6 cardinal compared to $65.3 cardinal successful 2024, representing a whopping 41% drop. In that time, operating expenses were $77.8 million, which means the institution isn't profitable, with an operating nonaccomplishment of $66.4 million.

That's not all. Navitas expects income to proceed falling successful Q4, forecasting gross of $7 cardinal compared to $18 cardinal successful 2024. Moreover, Navitas laminitis and CEO ​​Gene Sheridan stepped down successful August, with Chris Allexandre taking implicit arsenic CEO.

Considering the downturn successful gross and departure of Navitas' laminitis and CEO, wherefore did its banal surge this year? The company's strategical pivot to the blistery AI marketplace is 1 constituent contributing to stock terms gains.