Navitas Semiconductor Corporation (NVTS): A Bull Case Theory

We came across a bullish thesis on Navitas Semiconductor Corporation on Uncle Stock Notes’s Substack. In this article, we will summarize the bulls’ thesis on NVTS. Navitas Semiconductor Corporation's share was trading at $8.32 as of December 2nd. NVTS’s trailing P/E was 13.24 according to Yahoo Finance.

Navitas Semiconductor Corporation designs, develops, and markets power semiconductors in the United States, Europe, China, rest of Asia, and internationally. NVTS reported a modest $22 million in Q3 2025 revenue, with Q4 guidance slightly lower at $20.5 million, reflecting a deliberate exit from the saturated fast-charging consumer market. This strategic retreat, described as a “kitchen sink quarter,” involved clearing legacy inventory at a cost to gross margins, positioning the company to focus on high-margin, high-voltage power electronics.

Navitas’ transformation, dubbed “Navitas 2.0,” targets three high-growth markets: AI data centers, electric vehicles, and renewable energy/grid-scale storage, collectively representing a $103 billion total addressable market. The collaboration with NVIDIA to develop an 800V AI data center power architecture validates Navitas’ GaN technology and embeds it directly in the AI infrastructure supply chain. Simultaneously, the company is advancing its SiC product line, with 2.3kV and 3.3kV modules targeting EV main drives, solar inverters, and industrial heavy equipment, entering the domain of established players like Wolfspeed and Onsemi.

Financially, Navitas has exercised strict discipline, cutting Q4 non-GAAP operating expenses by 21% to $15 million and maintaining cash reserves of $150 million, providing a runway through 2026 when the high-power market is expected to accelerate. While near-term revenue and margins appear weak, these figures mask the structural reset underway. Forward-looking valuations, based on projected FY26 revenue growth of 100% to $172 million, imply a P/S ratio of 10.1x, highlighting the stock’s speculative, story-driven nature.

Execution risk remains significant, given competition, technology validation requirements, and the timing of mass adoption in AI, EV, and energy markets. However, the strategic pivot positions Navitas for substantial long-term upside, with the Q3 report serving as a deliberate, temporary low point before potential growth in 2026, offering a high-risk, high-reward opportunity for investors focused on next-generation power electronics.

Previously we covered a bullish thesis on Navitas Semiconductor Corporation (NVTS) by Shay Boloor in January 2025, which highlighted GaN leadership, margin expansion, and new design wins across EVs, AI data centers, and solar. The company's stock price has appreciated approximately by 142.56% since our coverage. The thesis still stands as Uncle Stock Notes shares a similar perspective but emphasizes the strategic exit from legacy fast-charging and focus on high-voltage GaN and SiC markets.

Navitas Semiconductor Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held NVTS at the end of the second quarter which was 11 in the previous quarter. While we acknowledge the potential of NVTS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.