Navitas Semiconductor Corporation (NVTS +22.45%) is a power semiconductor company that develops and markets gallium nitride (GaN) and silicon carbide (SiC) technologies for power electronics, including chargers and adapters, renewable energy systems, electric vehicles, and data centers and servers.
GaN and SiC are designed to provide higher efficiency, faster switching speeds, and smaller form factors compared to traditional silicon-based power devices. That means lower power consumption, less energy wasted as heat, improved cooling, and reduced physical space requirements.
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Just this October, Navitas stepped into the limelight when Nvidia chose its technology to develop the power delivery system for its 800-volt direct current (VDC) next-generation AI factory architecture. AI data centers used to run on lower-power 54-volt racks, which are now proving insufficient due to the excessive energy draws from modern computing workloads.
That was seen as a big win and launched the stock from around $9 to nearly $18 in the following days.
Navitas stock review
NASDAQ: NVTS
Key Data Points
But as of Nov. 5, 2025, almost a month later, Navitas is back to trading at around $10. The stock is also up on almost every notable monitoring period, and it has performed exceptionally well over the past 52 weeks, up just over 300%. However, NVTS stock currently trades at a price-to-sales ratio (P/S) of around 27, meaning investors are paying $27 for every $1 of Navitas' annual revenue, making it expensive compared to its peers.
And here's another bit of bad news: there was a nearly 15% drop following the company's release of its third quarter financials on Nov. 3, 2025.
"Navitas 2.0"
In its third-quarter financials, the company announced a significant pivot from its low-power mobile and consumer business to high-power markets, including data centers, grid infrastructure, and industrial electrification.
President and CEO Chris Allexandre christened the move as "Navitas 2.0," saying that the company aims to "accelerate, pivot, and double down on those high-power markets and customers" to see "more consistent, profitable, and sustainable results."
Now, a strategic pivot like this isn't uncommon, and makes a lot of sense, seeing how data center infrastructure is accelerating at a breakneck pace.
But here's the thing: Navitas has never had a profitable quarter yet, except perhaps for its third quarter of 2023,but that was more of an accounting technicality than actual money left in the company's pocket.
The data center gamble
A hard pivot like this is not going to be cheap, and even worse, the company's walking away from established revenue from its mobile and consumer business, which is primarily generated in China.
We're already seeing the effects. This past quarter, the company reported $10.1 million in revenue, representing a steep 53% drop from the same period last year. It has also forecasted lower year-on-year revenue for the fourth quarter at $7 million at the midpoint. Many people attribute the recent sell-off to the lower revenue and soft guidance.
But here's the thing: AI data centers are all the rage right now, and, ironically, these same data centers are expected to increase power consumption significantly over the next few years. That means power solutions from both ends of the production line will be in high demand.
Navitas can play both sides of the opportunity: supply power chips to energy providers and distributors while also delivering high-efficiency systems to data centers. If it can play its cards right, we might be seeing the company's most critical turning point.
Investment outlook
Even the most optimistic analysts will say that results from this strategic pivot won't be seen for a long while. Right now, Navitas stock has a consensus "Hold" rating from Wall Street analysts, and for good reason.
Navitas needs to demonstrate that it can manage its costs effectively while operating on low revenue during the transition and secure sufficient business to justify its move into high-power markets.
