Navitas Shares Plummet on Disappointing Earnings and Outlook

Navitas Semiconductor Corporation is facing intense investor scrutiny after reporting quarterly results that fell significantly short of market expectations. The chip specialist’s disappointing performance and weak forward guidance triggered a substantial selloff, with management announcing a strategic overhaul that failed to reassure market participants.

Market Reaction and Strategic Shift

The financial markets delivered a harsh verdict following Navitas Semiconductor’s earnings release. The company’s stock plummeted more than 9% during regular trading hours, with an additional 14% decline occurring in after-hours activity. This dramatic selloff came as the company unveiled what it termed a “Reset Quarter,” signaling a fundamental strategic repositioning away from low-margin mobile and consumer businesses in China.

As part of this transition, Navitas plans to streamline its sales channels and implement inventory reduction measures. The new strategy, branded “Navitas 2.0,” will prioritize expansion into high-performance markets including artificial intelligence data centers, energy infrastructure, and industrial electrification applications.

Quarterly Performance Metrics

For the third quarter of 2025, Navitas generated revenue of just $10.1 million, representing a dramatic 53.4% decrease compared to the same period last year. The outlook appears even more challenging moving forward, with management projecting fourth-quarter revenue of approximately $7 million—well below the $10.03 million that market analysts had anticipated.

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

The company did highlight one significant development, announcing recognition from NVIDIA as a partner for next-generation 800-volt power architectures designed for AI factory implementations. However, this future-oriented partnership contrasts sharply with current financial challenges.

Recovery Timeline and Analyst Sentiment

Navitas executives indicated they don’t anticipate sequential growth returning until the first quarter of 2026. Furthermore, the company expects meaningful revenue contributions from AI data center applications won’t materialize until 2027, creating a substantial gap between current performance and future prospects.

Market experts remain cautious in their assessment of Navitas’s situation. The average analyst price target currently stands at $6.32, suggesting significant potential downside from current trading levels. Technical indicators are providing conflicting signals about the stock’s near-term direction.

The central question confronting investors is whether the severe market reaction represents an overcorrection or the beginning of a sustained downward trajectory. Coming quarters will prove decisive in determining whether Navitas’s strategic repositioning can ultimately deliver the promised results or if the company’s challenges will continue.