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Why Navitas Semiconductor Stock Flew 15% Today

By Rich Smith – Nov 15, 2021 at 10:18AM

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Jefferies bank sings the praises of an Irish semiconductor maker.

What happened

Shares of Irish semiconductor stock Navitas Semiconductor Corporation (NVTS 5.04%) soared in early trading Monday, rising 15.3% through 10 a.m. EST after investment bank Jefferies initiated coverage of the stock with a buy rating.

Navitas manufactures gallium nitride integrated circuits used to fast-charge smartphones, laptops, and similar electronic devices.

Long green arrow inches up at the end.

Image source: Getty Images.

So what

Navitas, you see, is not just a semiconductor play, but a pure-play ESG investment for investors concerned about environmental, social, and governance issues, argues Jefferies today in its note covered by

As the analyst explains, Navitas' "low-cost GaN-on-Si power solutions for charging applications ... charge 3x faster and 40% more efficiently than existing Si technology." That should make them not just more attractive to consumers, but better for the environment as well because they're not wasting as much power as other charging devices.

Now what

At least, that's what should happen in theory. In practice, Navitas hasn't actually generated any revenue from its offerings yet, but has racked up $6.3 million in losses over the last nine months, according to Securities and Exchange Commission filings.  

Nevertheless, Jefferies thinks the company will have a total addressable market of as much as $500 million in sales by 2024, and is forecasting 140% compound annual revenue growth over the next two years.

Jefferies seems to think that makes Navitas stock worth about $24 a share.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Jefferies Financial Group Inc. The Motley Fool has a disclosure policy.

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