More than a few businesses with a hand in the artificial intelligence revolution have seen their stock prices soar this year. With rising concerns about loose lending practices at regional banks such as Zions and Western Alliance looming over the stock market, though, a market downturn could be around the corner.
A market downturn could be extra-bad news for folks who own shares of Navitas Semiconductor (NVTS -6.24%) and Symbotic (SYM -5.06%). Both stocks have more than tripled in 2025.
Unfortunately, the big gains Navitas and Symbotic put up recently may not last. Experts on Wall Street who follow these businesses are forecasting severe beatings.
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1. Navitas Semiconductor
From the end of April through Oct. 16, shares of Navitas Semiconductor soared 710% higher to reach $15.63 per share. The company develops semiconductors using gallium nitride (GaN) and silicon carbide (SiC) as opposed to standard silicon (Si). Both of these nontraditional semiconductor materials enable applications that call for higher voltages, making them perfect for power-hungry artificial intelligence (AI) applications.
Navitas's stock has been soaring since it announced progress in its development of devices that could power Nvidia's (NVDA 0.86%) next-generation 800-volt direct current (VDC) power architecture.
Nvidia's been complaining for months that the exponential growth of AI workloads is increasing data center power demands. Beginning in 2027, Nvidia intends to transition to an 800 VDC data center power infrastructure. This could be an enormous source of sales for Navitas. Nvidia reported second-quarter data center revenue that climbed 56% year over year to a whopping $41.1 billion.
Providing power to Nvidia's enormous data center operation could create a huge revenue stream for Navitas. At the moment, though, it isn't selling many semiconductors. In the first half of 2025, net revenue fell 35% year over year to just $28.5 million, which wasn't nearly enough to cover expenses. The company finished June with $161 million in cash after losing $65.9 million in the first half of 2025.
There are no guarantees that AI data center demand won't plummet before Navitas gets to provide heaps of power solutions to Nvidia. Sell-side analysts who noticed that the company's second-quarter gross profit shrank to just $2.3 million aren't comfortable with its present valuation. At recent prices, the company's market cap has risen above $3 billion.
Thanks to a recently inflated valuation and a long timeline before it's expected to sell new power-management chips to Nvidia, the average analyst following Navitas expects the stock to fall about 62% from recent prices to $5.65 per share.
If Nvidia follows through with plans to design next-generation AI factories powered by Navitas chips, its market cap will soar far above $3 billion. That said, investors can expect volatile Navitas stock to fall hard every time a prominent analyst expresses negativity regarding demand for data centers. This growth stock is appropriate only for folks with a very high risk tolerance.
2. Symbotic
From the end of April through Oct. 16, shares of Symbotic surged 234% higher. The company sells end-to-end warehouse automation systems, and major customers such as Walmart are beating a path to its door. During its fiscal third quarter that ended June 28, 2025, the company reported revenue that surged 26% year over year to $592 million.
At the midpoint of management's guided range, revenue is expected to climb 17% this year to $2.14 billion. The robotics company isn't strongly profitable, but it's on much better financial footing than Navitas. Symbotic has been reporting net losses, but its gross profit over the last nine months was more than sufficient to cover the operating expenses it racked up in the previous year period.
With just 10 customers and 42 operational systems, Symbotic is just getting started. Investors can expect steady growth in the years ahead, though. At the end of June, the company reported a $22.4 billion backlog.
Earlier this year, management warned that implementing a new storage structure could lead to slower revenue growth in the near term. Despite a large backlog to work through, Wall Street analysts are saying this stock is overbought, possibly due to the forecasted slowdown. A $44.61 consensus price target at the moment implies a loss of about 33% from recent prices.
With AI-powered software, implementing new, more efficient storage initiatives should be easier for Symbotic's growing customer base. Its bottom line is already moving in the right direction, which makes it appropriate for investors with a moderate risk tolerance level. Despite Wall Street's warnings, it's probably a good idea to take a closer look.
