Navitas Semiconductor: A Patent Fight Clouds the AI Story That Wall Street Wants to Believe

A patent infringement lawsuit filed by rival Wolfspeed has added another layer of pressure to Navitas Semiconductor, a stock already nursing deep losses as it pivots toward the data center AI market. The legal action arrived just weeks before the company is scheduled to report second-quarter earnings, raising the stakes for a management team that has pinned its growth story on next-generation power chips.

Navitas shares slid 3.42% on Monday to EUR 11.30, extending a month-long rout that has erased more than 45% of the stock’s value. The equity now trades roughly 61% below the 52-week high of EUR 29.20 reached on May 26, 2026. The market capitalization has fallen to approximately EUR 2.87 billion. Even so, the stock remains about 90% above its February low of EUR 6.15.

Wolfspeed filed its complaint in the U.S. District Court for Delaware in early July, alleging that Navitas infringes five fundamental patents related to wide-bandgap semiconductors. The suit targets Navitas’s core product families: the gallium nitride lines GaNFast, GaNSlim, and GaNSafe, as well as the silicon carbide GeneSiC MOSFETs and SiCPAK modules. Wolfspeed is seeking a permanent sales and import ban in the U.S., together with damages and back royalties.

Navitas has dismissed the claims as “baseless” and vowed to defend its intellectual property vigorously. The company points to decades of independent development as the foundation of its technology. The legal challenge emerges at an awkward moment for Navitas, which has been aggressively repositioning itself to serve the power-hungry infrastructure of AI data centers. A recently announced 20-kilowatt gallium nitride platform targets 800-volt server architectures, and the company has highlighted its ties to the NVIDIA MGX ecosystem, promising power boards that eliminate intermediate voltage conversion stages.

Should investors sell immediately? Or is it worth buying Navitas Semiconductor Corporation?

When Navitas reports results for the quarter ended June 30 later this month, analysts polled by the company expect a non-GAAP loss of USD 0.043 per share, a significant improvement from the USD 0.250 loss in the same period last year. Revenue, however, is forecast to slump roughly 31% to USD 10 million from USD 14.5 million. For the full fiscal year, the market currently sees revenue of about USD 42.4 million, down from USD 45.9 million in the prior year.

Wall Street’s consensus recommendation on Navitas stands at “Hold”, with price targets ranging from “Sell” to “Buy”. The average 12-month target sits near USD 14.74. On a technical basis, the stock’s Relative Strength Index has fallen to 32.7, approaching the oversold threshold. The 50-day moving average of EUR 18.53 looms about 39% above the current price, while the annualized 30-day volatility has surged to 121.24%, reflecting extreme investor uncertainty.

The patent suit injects a fresh element of uncertainty into Navitas’s AI revenue ambitions. The company recently secured a supply agreement for GaNFast and GeneSiC chips used in 800-volt server architectures for AI workloads, serving tier-1 automakers and large data center operators. Whether those relationships remain unaffected by the legal proceedings will likely be a central topic on the earnings call. For now, Navitas is trying to convince investors that its technology roadmap can outrun the legal and financial headwinds, but the stock’s trajectory suggests the market is not yet convinced.