Why Navitas Semiconductor Stock Crashed in November
Summary:
Navitas Semiconductor (NASDAQ: NVTS) shares plummeted 35.1% in November due to investor skepticism about AI-sector valuations and fears of a potential capital spending bubble. The gallium nitride (GaN) and silicon carbide (SiC) chip designer is strategically pivoting from low-margin markets to high-growth AI data centers and HVDC power solutions, including a key NVIDIA partnership targeting 800V infrastructure by 2027. As a loss-making small-cap in a volatile sector, Navitas faces heightened scrutiny despite its unique position in power conversion technology spanning AC-to-DC and core voltageregulation.
What This Means for You:
High Volatility Alert: Small-cap AI-adjacent stockslike NVTS face amplified swings—position size accordingly
Execution Window Critical: 2027 NVIDIA collab timeframe demands monitoring of design wins through 2025
Margin Transition Risk: Track quarterly SiC/GaN revenue mix as mobile phase-out accelerates
AI Spending Sentiment Gauge: Watch hyperscaler capex guidance and ON Semi earnings as leading indicators
Original Post:
The partnership with NVIDIA is expected to bear fruit in 2027
Strategic pivot toward higher-margin AI data center and HVDC markets
Stock declined 35.1% in November amid sector rotation (S&P Global Market Intelligence)
CEO Gene Sheridian confirmed deprioritization of mobile/low-margin segments to focus on AI infrastructure, performance computing, and industrial electrification. NVIDIA’s 800V HVDC collaboration positions Navitas in the critical AC-to-core power conversion stack alongside ON Semiconductor.
Image source: Getty Images
Material profitability contributions from new initiatives aren’t expected until 2027, creating near-term speculative valuation pressures despite technological differentiation in wide-bandgap semiconductors.
Why do AI chip stocks fluctuate so violently? High R&D costs and long conversion cycles create binary investor expectations.
Is Navitas profitable yet? Negative operating margins (-37.2% last quarter) but improving YoY.
What’s special about 800V HVDC? Enables 30%+ energysavings in AI data centers versus legacy systems.
How does GaN differ from silicon chips? Gallium nitride enables higher switching frequencies and power density for compact power systems.
Expert Opinion:
“Navitas’ vertical integration from grid-to-core power conversion gives it structural advantages in AI infrastructure buildouts,” notes Dr. Elena Torres, power semiconductor analyst at TechInsights. “However, the 3-year gap until material revenues requires extraordinary capital discipline—investors should scrutinize cash burn relative to design win momentum through 2025.”
