Navitas Crashes 55% In A Month: What’s Next?

It’s astonishing that a company still holding roughly $150 million in cash has seen its stock collapse by 55% in just one month. Yet that is exactly what has happened to Navitas Semiconductor Corp. (NASDAQ: NVTS), now trading near $7.70. The sell-off has been swift, intense, and rooted in deeper structural issues rather than just market mood swings.

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A Revenue Collapse That Spooked Investors

The biggest trigger for the plunge has been Navitas’s sharp revenue decline. In Q3 2025, the company generated only about $10 million, less than half of the $21 million it posted in the same quarter last year. But the real shock came from its outlook: Navitas expects Q4 revenue to fall further to roughly $7 million, marking one of the steepest sequential drops in its history.

This collapse is partly self-inflicted. Navitas is reducing its exposure to the commoditized China mobile-charging market — once a major revenue stream — and clearing out channel inventory. While this may help profitability in the long run, the short-term impact on the top line has been severe.

Losses Are Mounting Despite Cost Cuts

Navitas is still burning significant cash, posting a non-GAAP operating loss of more than $11 million in Q3 and a GAAP loss approaching $19 million. EPS came in worse than expected at –$0.09, widening investor concerns that profitability is nowhere in sight.

The company has been cutting expenses and says operating costs should fall to about $15 million in Q4. Even so, with losses still above $10 million per quarter, the cushion of $150 million in cash is meaningful — but not infinite.

The Big Pivot: High Power, High Expectations

Navitas calls its transformation strategy “Navitas 2.0,” a pivot away from low-margin consumer chips into high-power markets such as AI data centers, energy storage, grid infrastructure, and industrial electrification. These segments offer richer long-term potential, especially with growing demand for GaN and SiC power solutions.

The challenge? These new markets have long design cycles and slow revenue ramps. Navitas is already sampling higher-voltage devices and highlighting collaborations tied to AI infrastructure, but meaningful revenue from these opportunities may not appear until 2026 or later. Investors, however, are reacting to the fact that the benefits are still theoretical while the losses are immediate.

A Stock Caught Between Vision and Reality

The sharp decline is not just about one weak quarter — it’s about execution risk. Navitas is asking investors to buy into a long-term transformation at the very moment its legacy revenue is falling off a cliff. That gap between present weakness and future promise has created intense uncertainty.

Add in rising competition in both the GaN and SiC markets, plus the possibility of future capital raises if cash burn persists, and you get a setup where even long-term investors are questioning whether the bottom is truly close.

So, Is Navitas a Buy at $7.70 — or Is More Downside Coming?

There are two clear interpretations of the current stock price:

The Bullish View:

Navitas is hitting “bottom quarter” territory, with revenue expected to stabilize after Q4. Its cash position gives it room to execute its pivot, and if high-power markets accelerate — especially in AI and grid electrification — the company could emerge much stronger. For long-term investors who believe in the GaN/SiC roadmap, this selloff may look like a strategic buying window.

The Bearish View:

The pivot may take much longer than the market expects, and revenue could remain depressed well into 2026. Losses are still large, cash burn is steady, and there’s a real possibility of dilution if the transition drags on. If Q4 guidance proves optimistic or if new design wins don’t quickly convert into revenue, the stock could still fall further.

The Bottom Line

Navitas’s 55% drop is not a random market overreaction — it reflects real concerns about collapsing revenue, rising losses, and the uncertain timing of its high-power ambition. The company still has a well-funded balance sheet and an exciting technology roadmap, but until investors see credible signs of revenue traction in data centers, energy storage, and grid applications, the stock is likely to remain volatile.

This is a high-risk, high-reward moment. For patient investors with conviction in the long-term GaN/SiC story, the current price may be attractive.

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