Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 19 Nov, 25 | NVTS | Buy | USD 7.86 | USD 8.3 | USD 8.8 | 1 day | Closed |
12.85%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company's products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications. It operates in the United States, Europe, China, rest of Asia, and internationally. The company was founded in 2013 and is based in Torrance, California.
Significant YoY Reduction in Operating Expenses: Operating expenses are expected to decline by 24% year-over-year by Q4 FY25, reflecting disciplined cost controls and organizational restructuring (Q4 FY25 outlook). This YoY reduction is directly linked to workforce redeployment and facility optimization.
Gross Margin Improvement: Although Q3 FY24 data is not disclosed, the company reported a sequential improvement in gross margin from 38.5% in Q2 FY25 to 38.7% in Q3 FY25, demonstrating early benefits of mix optimization toward higher-value markets (Q3 FY25).
Higher Operating Loss: The loss from operations increased to $11.5 million in Q3 FY25, compared with $10.6 million in Q2 FY25, as cost reductions were insufficient to offset sequential revenue declines (Q3 FY25).
Year-over-Year Revenue Pressure: Q3 FY25 revenue of $10.1 million declined year-over-year due to China tariff risks impacting SiC and pricing pressure in China mobile markets (Q3 FY25).
Navitas faces execution risk in its accelerated pivot away from China-based mobile markets toward high-power AI, grid, and industrial applications, as near-term revenue volatility, customer transition timing, and reliance on successful adoption of new GaN and SiC platforms may impact the pace of achieving sustainable profitability
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 7.86 | 7.0 | 8.3 | 8.8 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strategic Transformation Toward High-Power Markets: Navitas Semiconductor reported that Q3 FY25 marked the early phase of its transition into “Navitas 2.0,” a strategic realignment focused on high-power, high-growth markets including AI data centers, performance computing, grid infrastructure, and industrial electrification. Management emphasized that the company is intentionally pivoting away from consumer and mobile segments to reallocate engineering, R&D, and commercial resources toward long-duration, higher-margin engagements in these targeted markets. This transformation is supported by an upgraded leadership team and renewed emphasis on execution efficiency.
Market Backdrop and Technology Positioning: The company highlighted a rapidly expanding global electrification cycle, driven by surging AI workloads and rising demand across energy infrastructure. Navitas stated that GaN and high-voltage SiC technologies are increasingly viewed as essential enablers of next-generation data center and grid architectures. With over 300 million GaN units shipped and a portfolio strengthened by the GeneSiC high-voltage SiC platform, Navitas believes it is uniquely positioned to scale alongside customers in AI, grid modernization, and industrial electrification.
Operational Execution and Q3 Financial Performance: For Q3 FY25, Navitas delivered revenue of $10.1 million, landing at the midpoint of guidance. Gross margin stood at 38.7%, slightly higher than Q2 due to favorable mix improvements. Operating expenses were reduced sequentially from $16.1 million to $15.4 million, reflecting disciplined cost management aligned with the company’s transition strategy. Cash and cash equivalents ended the quarter at $151 million, and the company maintained a debt-free balance sheet.
Decisive Actions to Accelerate High-Power Transition: Management detailed several operational decisions designed to accelerate the shift toward high-power markets. These include reducing exposure to China-based mobile customers, consolidating distribution networks, reallocating engineering talent, and pruning lower-margin and transactional programs. Navitas noted that these changes will temporarily compress near-term revenue but are essential to improving revenue quality and long-term profitability. Q4 FY25 is expected to represent the revenue trough before sequential growth resumes through FY26.
Product Advancements and Ecosystem Integration: During the quarter, Navitas introduced its first 100V GaN FETs for AI power and high-performance systems and began sampling new 2.3kV and 3.3kV SiC modules for grid-related applications. The company also underscored its participation in the NVIDIA 800V DC AI Factory ecosystem, noting this partnership as a key validation of its relevance in next-generation AI power architectures. These developments support a broader roadmap expansion across medium-voltage GaN, high-voltage GaN ICs, and advanced SiC modules.
Outlook and Financial Guidance: For Q4 FY25, Navitas guided revenue to $7 million (± $0.25M) and gross margin of 38.5% (± 0.5%), reflecting the effects of mobile business de-prioritization and channel inventory resets. Operating expenses are expected to decline further to $15 million, representing a 24% year-over-year reduction. Management reiterated that FY26 will serve as a transition year, characterized by sequential quarterly revenue growth, increasing mix toward high-power programs, and gradual margin expansion.
Long-Term Value Creation Priorities: Navitas reaffirmed its commitment to delivering a scalable and sustainable business model centered around high-power applications. By focusing on deeper, multi-generational customer engagements, expanding its GaN and SiC leadership, enforcing financial discipline, and maintaining strong liquidity, the company aims to establish a durable foundation for profitable growth. Management emphasized that transparent progress updates will accompany the ongoing transformation.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Navitas Semiconductor (NASDAQ: NVTS), at the current market price of USD 7.86, as on Nov 19, 2025 at 9:35 am PST.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Semiconductors
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| NVTS Navitas Semiconductor Corp |
0.41 4.81% | 9.04 | - | - | 9.98 | 2.08 | 8.14 | -6.6549 |
| NVDA NVIDIA Corporation |
-5.445 2.93% | 180.16 | 62.11 | 36.76 | 36.43 | 51.65 | 36.19 | 61.96 |
| AVGO Broadcom Inc |
-12.365 3.73% | 318.75 | 139.68 | 28.99 | 17.14 | 12.73 | 19.13 | 40.92 |
| TSM Taiwan Semiconductor Manufacturing |
-5.68 1.66% | 335.68 | 19.45 | 15.92 | 0.24 | 4.85 | 0.22 | 0.30 |
| AMD Advanced Micro Devices Inc |
-2.32 0.94% | 243.95 | 244.65 | 48.78 | 11.64 | 4.72 | 11.51 | 62.93 |
Data Powered by EOD Historical Data (“EODHD”).
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Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on November 19, 2025. The reference data in this report has been partly sourced from REFINITIV.
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