Why Is NVTS Stock Falling Overnight?

• Navitas reported better-than-expected third-quarter results and issued a Q4 sales forecast that was also higher than expectations.
• The company said it expects mobile and low-end consumer revenue to be essentially eliminated from its mix by year-end.
• Retail sentiment for NVTS flipped to ‘bullish’ from ‘bearish.’

Navitas Semiconductor Corp (NVTS) fell over 2% in overnight rising after initially rising following the power chip firm's upbeat quarterly report issued during post-market hours on Tuesday.

Navitas reported better-than-expected third-quarter results and forecast Q4 sales also higher than expectations.

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The overnight drop appeared to be in line with a fall in the broader market amid polls showing that Democrats were headed for majority control of Congress. Investors fear a big Democratic win could mean more restrictions on data centers, which could limit the AI buildout.

Navitas Sales Rise, Losses Narrow

Total revenue grew 33% sequentially and 38% year over year to $14 million, beating expectations of $13.4 million. Adjusted loss narrowed to $0.03 per share from $0.05 a year earlier. It was smaller than the $0.04 per share loss analysts had expected.

For Q4, the company expects revenue of $15.5 million to $16.5 million, beating expectations of $15.1 million.

Navitas, which designs and sells advanced power devices, has caught investors' attention for its gallium nitride (GaN) and silicon carbide (SiC) semiconductors, which make power conversion in data centers, electric vehicles, renewable energy, and industrial systems more efficient. 

“Our strong third quarter results and the continued acceleration in high-power markets reflect the successful execution of our Navitas 2.0 transformation,” stated Chris Allexandre, CEO of Navitas, in the earnings press release. 

“By year-end, we expect mobile and low-end consumer revenue to be essentially eliminated from our mix, further positioning the Company as a high-power business with AI Infrastructure, composed of AI Data Centers and energy grid infrastructures that power them, expected to account for more than 40% of total revenue.”

Retail View On NVTS

On Stocktwits, the retail sentiment for NVTS flipped to ‘bullish’ from ‘bearish,’ amid higher message volume.

“Results are out. The highlight to me is that this is the first YOY growth since 2024. Proof of concept is strong,” said a trader. Another wrote: “NVTS anything under $10 is good entry imo. Buy and Hold.”

NVTS stock closed at $8.56 on Monday and is up 20% year to date.

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