Navitas Semiconductor: The Tiny Chip Maker at the Center of AI’s Power Puzzle
Navitas Semiconductor Corp (NVTS) has spent the past week as one of the most volatile names on the Nasdaq, catching even seasoned traders off guard. The small power-chip maker, which few investors tracked closely just months ago, first surged on enthusiasm over its role in Nvidia’s AI data center plans, then slid sharply as a sector-wide selloff took hold.
But beneath the daily swings lies a deeper story: Wall Street analysts, on average, see the stock falling more than 40% from its current level, according to data from StockAnalysis. The consensus rating is hold, with price targets ranging from $8 to $21—far below Friday’s close near $25, after hitting an all-time high above $33 in late May.
The disconnect is classic. Buyers are betting on what Navitas could become in the booming AI data center power market, while analysts are pricing in the reality of small revenue and persistent losses. The company, based in Torrance, California, makes power chips using gallium nitride and silicon carbide—materials that switch electricity faster and waste less heat than conventional silicon. On June 3, Navitas said its 800-volt direct-current power board would be featured in Nvidia’s AI Factory MGX showcase at Computex in Taipei, a win that validated its technology but did not immediately change its bottom line.
“Power delivery has become one of the most critical challenges,” CEO Chris Allexandre said on the earnings call, highlighting the strategic shift to high-power markets like data centers and the grid under a plan called Navitas 2.0. The company is winding down its legacy mobile and consumer business to focus on these growth areas.
First-quarter revenue came in at just $8.6 million, down 39% from a year earlier, though up 18% sequentially. The company also reported a net loss of $33.8 million. Management guided second-quarter revenue to roughly $10 million—a sign of gradual improvement, but still a long way from profitability.
The June 5 selloff hit Navitas especially hard, but the damage was broader. Broadcom’s weak AI sales outlook had already rattled chip stocks, and a stronger-than-expected May jobs report revived fears that the Federal Reserve would keep interest rates high—a headwind for fast-growing, unprofitable companies. Compounding the pressure, Navitas disclosed in an SEC filing that it issued more than 3.2 million shares tied to its 2021 merger, with up to 10 million more possible by October, raising concerns about dilution.
Even after the pullback, Navitas is up roughly 250% year to date, far outpacing the broader market and even hot AI stocks like Marvell Technology, which has gained about 141% over the same period. According to Barron’s, the stock now trades at about 137 times estimated next-12-month sales—a valuation that leaves little room for error.
Navitas has a genuine product in a genuine growth market, and its link to Nvidia provides credibility. But the stock’s current price already reflects years of future success that the financials have yet to demonstrate. Analysts are openly cautious, and the consensus hold rating with targets far below the market price suggests that anyone buying here is betting on a story that still needs to prove itself in revenue and profit—much like the broader AI chip trade.
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This story was originally published by TheStreet on June 6, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.