Why Did Navitas Semiconductor Stock Tumble 14% Pre-Market Today?

• Navitas to raise about $100 million via private placement of stocks.
• The company will issue roughly 14.8 million shares at $6.75 apiece under the terms of the agreement.
• The company specializes in gallium nitride (GaN) and silicon carbide (SiC) technologies.

Navitas Semiconductor Corp. (NVTS) on Friday announced that it has reached a definitive agreement to raise about $100 million through a private placement of its Class A common stock. 

The move aims to strengthen the company’s balance sheet and fund general corporate initiatives, including working capital.

Financing Details and Structure. 

The semiconductor manufacturer will issue roughly 14.8 million shares at $6.75 apiece under the terms of the agreement. The deal is expected to close around November 10, 2025, pending standard closing conditions. 

“This capital raise enables us to support Navitas’ transformation and accelerate our momentum into higher-power markets.”

-Chris Allexandre, President and CEO, Navitas

“We’re fueling and energizing the shift to Navitas 2.0, focusing our energy on the high-power markets that are shaping the future: AI data centers, performance computing, energy and grid infrastructure, and industrial electrification.” 

Following the announcement, Navitas’ stock traded over 14% lower in Friday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory amid ‘normal’ message volume levels. 

Navitas’ Operations

Navitas Semiconductor develops advanced power chips that enable electronic systems to be faster, smaller, and more energy-efficient. The company specializes in gallium nitride (GaN) and silicon carbide (SiC) technologies, which are key components in powering AI data centers, high-performance computing (HPC) systems, energy grids, and industrial equipment.

In its third-quarter earnings announced on Monday, the company’s revenue of $10.1 million and adjusted loss per share (EPS) of $0.05 both matched the analysts’ consensus estimates, according to Fiscal AI data. 

NVTS stock has gained over 147% in 2025 and over 301% in the last 12 months. 

Also See: EXPE Stock Rockets 15% Pre-Market On Q3 Earnings Beat But Is Still Away From Wells Fargo's New Price Target

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