Navitas Semiconductor Surges 246% - Is It a Buy or Hold for 2025?

Navitas Semiconductor (NVTS) has seen a remarkable 246% surge in its stock over the past three months, outperforming the broader Electronics – Semiconductors industry and benchmark indices like the S&P 500. Investor excitement stems from expanding customer pipeline, new design wins, and innovations in GaN and SiC technologies for EVs, AI data centers, and renewable energy.

Navitas launched the industry’s first bidirectional GaN IC, revolutionizing power conversion with applications in solar microinverters, EV onboard chargers, and more. GaNSafe automotive qualification led to a significant design win with Changan Auto and a growing EV pipeline, positioning Navitas for high-voltage charger scaling in 2026. Expansion into AI data centers with leading design wins enhances its market reach.

Despite ongoing challenges such as muted revenue growth and softness in core markets due to inventory corrections, Navitas remains focused on cost reduction and efficiency improvements to achieve positive EBITDA in 2026. However, the company faces near-term headwinds like declining gross margins, operating losses, and increased competition from established rivals like Wolfspeed and Power Integrations.

With a forward P/S ratio of 15.5X, well above the industry average, and downward revisions to 2025 earnings estimates, investors may want to exercise caution with NVTS stock. While the company holds promise with its innovation roadmap, achieving sustained revenue growth and profitability remains a key challenge. Until then, the stock may be better observed than purchased.

Read more at Nasdaq: After a 246% Rally, Is Navitas Semiconductor a Buy or a Hold in 2025?