NVTS Stock Forecast & Price Target

Navitas Semiconductor Corp is witnessing strengthening demand in utility-scale renewables and solid-state transformer applications, indicating a robust growth trajectory within high-voltage applications. The company anticipates a stable non-GAAP gross margin of approximately 38.5%, with expected future improvements as it shifts towards higher-margin sectors like AI data centers and industrial electrification. Additionally, with a cash position of around $160 million and no debt, Navitas is well-positioned to capitalize on emerging opportunities, particularly in the data center market, suggesting a positive outlook for revenue growth in the coming years.

Navitas Semiconductor Corp reported a significant revenue decline in its most recent quarter, with revenues of $10.1 million, reflecting a 53% year-over-year decrease, largely attributed to tariff impacts related to China and pricing pressures in the mobile sector. Guidance for the upcoming quarter indicates a further decline, with forecasted revenue of $7.0 million, which represents a 30.7% quarter-over-quarter decrease and a staggering 61.1% year-over-year drop, as the company shifts focus away from the low-margin mobile and consumer markets towards higher-margin applications. The anticipated ongoing decline in revenue for the next two years raises concerns regarding competitive pressures and the company's ability to maintain market share, further solidifying a negative outlook for the stock.