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NVTS Surges 42% in 3 Months: Is it Too Late to Buy the Stock?
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Navitas Semiconductor (NVTS - Free Report) shares have risen 41.8% in the past three months, outperforming the broader Zacks Computer and Technology sector’s return of 13.1%.
Over the same time frame, it has also outperformed the Zacks Electronics- Semiconductors industry and its peers, including Alpha and Omega Semiconductor (AOSL - Free Report) , Nova Ltd (NVMI - Free Report) and Cirrus Logic (CRUS - Free Report) . In the past three months, shares of AOSL have gained 25.5%, while NVMI and CRUS have lost 1% and 14%, respectively. The industry appreciated 39.1% in the same time frame.
This outperformance affirms Navitas Semiconductor’s ongoing excellence in the mobile and consumer market with GaNSlim ICs featured in another 26 design wins in the third quarter of 2024.
In the third quarter, revenues increased 6% sequentially to $21.7 million, majorly driven by significant progress in the Mobile end-market.
Noteworthy to mention, Navitas Semiconductor’s intensifying organizational focus on the three most important markets — EV, mobile and AI data center — coupled with a robust $1.6 billion-plus customer pipeline and growing momentum in design wins are anticipated to continue driving growth.
Navitas Semiconductor Corporation Price and Consensus
With its strategic focus on high-growth markets like electric vehicles (EVs) and artificial intelligence (AI) data centers, Navitas Semiconductor has maintained its growth story and established a strong position in the semiconductor industry. The foundation of NVTS' growth strategy is its leadership in GaN and SiC technologies. The high-speed switching capabilities and exceptional efficiency of GaN semiconductors make them perfect for power-intensive applications in the EV and AI markets.
During the third-quarter earnings call, Navitas Semiconductor emphasized its significant progress in gaining new design wins and growing its clientele. These accomplishments demonstrate how NVTS can increase its market share as GaN and SiC adoption rises.
Additionally, Navitas Semiconductor’s efforts to strengthen its supply chain and lower production risks are exemplified by its dual-sourcing agreement with Infineon. As more industries turn to energy-efficient semiconductor solutions, this strategic alliance not only increases NVTS' competitive edge but also guarantees that it can satisfy rising demand.
Navitas Semiconductor is also taking advantage of the quick developments in data center and AI, which calls for high-performance power solutions. The company's cutting-edge chips are expected to see an increase in demand as a result of growing investments in AI-driven infrastructure. In the EV market, Navitas Semiconductor's technology is well-positioned to support the industrial and automotive electrification trends, guaranteeing a strong growth trajectory in the years to come.
Portfolio Strength Aids NVTS’ Prospects
Navitas Semiconductor’s sustained focus on strengthening its portfolio will keep the company on the growth trajectory. In a move to boost its portfolio, the company launched the world's first 8.5 kW power supply unit in November 2024, which is powered by GaN and SiC technologies to achieve 98% efficiency for next-generation AI and hyperscale data centers.
The launch of GaNSlim, a new generation of highly integrated GaN power ICs that offer the highest level of integration and thermal performance in October 2024 marks a significant milestone for Navitas Semiconductor. These ICs will facilitate and accelerate the development of small form factor, high-power-density applications.
The release of its reference design for a 4.5 kW AI data center power supply with optimized GaNSafe and G3F SiC power components in July 2024 places NVTS in an advantageous position. This optimized design facilitates the world’s highest power density with 137 W/in3 and more than 97% efficiency.
The G3F 650 V SiC MOSFETs portfolio was further expanded by Navitas Semiconductor in August 2024 to include a surface-mount Transistor Outline Leadless package that is rugged, high-speed, thermally enhanced, and intended for demanding, high-power and high-reliability applications. These new product launches with enhanced capabilities are likely to attract new customers, thereby boosting NVTS’ revenues.
Why Does NVTS’ Valuation Attracts Investors?
Given its current price-to-sales (P/S) multiple of 6.87X, Navitas Semiconductor is trading at a discount to the industry average of 8.26X. For investors looking for value who think the GaN and SiC markets have long-term potential, this discount offers an entry point.
The low P/S ratio indicates that the market has already priced in a large portion of the downside risk, making it an alluring investment opportunity.
Conclusion: Buy NVTS Stock for Now
Despite several significant obstacles in 2024, such as lower-than-anticipated sales and delayed profitability, Navitas has a bright future. A strong argument for purchasing the stock right away is made by the company's strategic positioning in high-growth industries like AI and EVs as well as its discounted valuation.
The innovative technology and market opportunities of Navitas Semiconductor present substantial upside potential for investors.
Image: Bigstock
NVTS Surges 42% in 3 Months: Is it Too Late to Buy the Stock?
Navitas Semiconductor (NVTS - Free Report) shares have risen 41.8% in the past three months, outperforming the broader Zacks Computer and Technology sector’s return of 13.1%.
Over the same time frame, it has also outperformed the Zacks Electronics- Semiconductors industry and its peers, including Alpha and Omega Semiconductor (AOSL - Free Report) , Nova Ltd (NVMI - Free Report) and Cirrus Logic (CRUS - Free Report) . In the past three months, shares of AOSL have gained 25.5%, while NVMI and CRUS have lost 1% and 14%, respectively. The industry appreciated 39.1% in the same time frame.
This outperformance affirms Navitas Semiconductor’s ongoing excellence in the mobile and consumer market with GaNSlim ICs featured in another 26 design wins in the third quarter of 2024.
In the third quarter, revenues increased 6% sequentially to $21.7 million, majorly driven by significant progress in the Mobile end-market.
Noteworthy to mention, Navitas Semiconductor’s intensifying organizational focus on the three most important markets — EV, mobile and AI data center — coupled with a robust $1.6 billion-plus customer pipeline and growing momentum in design wins are anticipated to continue driving growth.
Navitas Semiconductor Corporation Price and Consensus
Navitas Semiconductor Corporation price-consensus-chart | Navitas Semiconductor Corporation Quote
Factors Aiding Navitas’ Bright Future
With its strategic focus on high-growth markets like electric vehicles (EVs) and artificial intelligence (AI) data centers, Navitas Semiconductor has maintained its growth story and established a strong position in the semiconductor industry. The foundation of NVTS' growth strategy is its leadership in GaN and SiC technologies. The high-speed switching capabilities and exceptional efficiency of GaN semiconductors make them perfect for power-intensive applications in the EV and AI markets.
During the third-quarter earnings call, Navitas Semiconductor emphasized its significant progress in gaining new design wins and growing its clientele. These accomplishments demonstrate how NVTS can increase its market share as GaN and SiC adoption rises.
Additionally, Navitas Semiconductor’s efforts to strengthen its supply chain and lower production risks are exemplified by its dual-sourcing agreement with Infineon. As more industries turn to energy-efficient semiconductor solutions, this strategic alliance not only increases NVTS' competitive edge but also guarantees that it can satisfy rising demand.
Navitas Semiconductor is also taking advantage of the quick developments in data center and AI, which calls for high-performance power solutions. The company's cutting-edge chips are expected to see an increase in demand as a result of growing investments in AI-driven infrastructure. In the EV market, Navitas Semiconductor's technology is well-positioned to support the industrial and automotive electrification trends, guaranteeing a strong growth trajectory in the years to come.
Portfolio Strength Aids NVTS’ Prospects
Navitas Semiconductor’s sustained focus on strengthening its portfolio will keep the company on the growth trajectory. In a move to boost its portfolio, the company launched the world's first 8.5 kW power supply unit in November 2024, which is powered by GaN and SiC technologies to achieve 98% efficiency for next-generation AI and hyperscale data centers.
The launch of GaNSlim, a new generation of highly integrated GaN power ICs that offer the highest level of integration and thermal performance in October 2024 marks a significant milestone for Navitas Semiconductor. These ICs will facilitate and accelerate the development of small form factor, high-power-density applications.
The release of its reference design for a 4.5 kW AI data center power supply with optimized GaNSafe and G3F SiC power components in July 2024 places NVTS in an advantageous position. This optimized design facilitates the world’s highest power density with 137 W/in3 and more than 97% efficiency.
The G3F 650 V SiC MOSFETs portfolio was further expanded by Navitas Semiconductor in August 2024 to include a surface-mount Transistor Outline Leadless package that is rugged, high-speed, thermally enhanced, and intended for demanding, high-power and high-reliability applications. These new product launches with enhanced capabilities are likely to attract new customers, thereby boosting NVTS’ revenues.
Why Does NVTS’ Valuation Attracts Investors?
Given its current price-to-sales (P/S) multiple of 6.87X, Navitas Semiconductor is trading at a discount to the industry average of 8.26X. For investors looking for value who think the GaN and SiC markets have long-term potential, this discount offers an entry point.
The low P/S ratio indicates that the market has already priced in a large portion of the downside risk, making it an alluring investment opportunity.
Conclusion: Buy NVTS Stock for Now
Despite several significant obstacles in 2024, such as lower-than-anticipated sales and delayed profitability, Navitas has a bright future. A strong argument for purchasing the stock right away is made by the company's strategic positioning in high-growth industries like AI and EVs as well as its discounted valuation.
The innovative technology and market opportunities of Navitas Semiconductor present substantial upside potential for investors.
NVTS currently carries a Zacks Rank #2 (Buy), implying that investors should accumulate the stock now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.