Navitas Semiconductor Shares Drop Nearly 16% After Weak Q3 Guidance Despite AI Push

Navitas Semiconductor Corp. NVTS shares are trading sharply lower on Tuesday after the company issued third-quarter revenue guidance below Wall Street expectations.

What To Know: While Navitas highlighted progress in AI data center initiatives and partnerships with key players like Nvidia, the immediate financial outlook weighed heavily on investor sentiment.

For the second quarter of 2025, Navitas reported $14.5 million in revenue, slightly up from the prior quarter but down significantly from $20.5 million a year earlier.

The company posted a GAAP operating loss of $21.7 million and a non-GAAP operating loss of $10.6 million. Despite narrowing losses and improved cash reserves, now totaling $161.2 million, the company's forecast disappointed the market. Navitas expects third-quarter revenue of just $10 million, plus or minus $0.5 million, well below investor expectations. The weak forecast was attributed to China tariff risks and a shift toward a more selective mobile strategy.

The company is making a strategic pivot toward AI data centers and energy infrastructure, aiming to reduce dependence on consumer and mobile sectors. It raised $100 million in fresh capital and formed a new manufacturing partnership with Powerchip to lower costs and increase capacity.

Navitas said it is working with Nvidia on power solutions for next-generation 800V AI data centers using its GaN and SiC technologies, targeting a $2.6 billion market opportunity by 2030. However, the benefits of these initiatives are expected to materialize later, with volume production not projected until 2027.

While long-term prospects may be promising, the immediate revenue drop and cautious third-quarter outlook triggered a selloff. Investors appear concerned that near-term financials remain weak despite strategic announcements and partnerships.

NVTS Price Action: Navitas shares were down 15.90% at $6.77 at market close on Tuesday, according to Benzinga Pro.

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