Navitas Semiconductor Stock Drop Looks Sharp, But How Deep Can It Go?

Navitas Semiconductor (NVTS) stock is down 9.9% in a day. The recent slide reflects concerns over significant revenue downgrades from deprioritized low-power products and broader market geopolitical tensions, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?

Before judging its downturn reslience, let’s look at where Navitas Semiconductor stands today.

• Size: Navitas Semiconductor is a $2.2 Bil company with $57 Mil in revenue currently trading at $10.17.
• Fundamentals: Last 12 month revenue growth of -38.1% and operating margin of -181.4%.
• Liquidity: Has Debt to Equity ratio of 0.0 and Cash to Assets ratio of 0.35
• Valuation: Navitas Semiconductor stock is currently trading at P/E multiple of -17.3 and P/EBIT multiple of -34.9
• Has returned (median) 26.7% within a year following sharp dips since 2010. See NVTS Dip Buy Analysis.

These metrics point to a Weak operational performance, alongside Very High valuation – making the stock Very Unattractive. For details, see Buy or Sell NVTS Stock

That brings us to the key consideration for investors worried about this fall: how resilient is NVTS stock if markets turn south? This is where our downturn resilience framework comes in. Suppose NVTS stock falls another 20-30% to $7 – can investors comfortably hold on? Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.

2022 Inflation Shock

• NVTS stock fell 84.0% from a high of $20.16 on 15 November 2021 to $3.22 on 27 December 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• The stock is yet to recover to its pre-Crisis high
• The highest the stock has reached since then is $17.10 on 20 October 2025 , and currently trades at $10.17

 
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