Navitas Semiconductor: Reset Underway - More Momentum Than Fundamentals
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Juxtaposed Ideas15K FollowersFollow5ShareSaveCommentsSummaryNavitas remains a Hold here, as its outsized stock price rally from April 2025 bottom diverges sharply from the deteriorating near-term fundamentals while triggering the expensive valuations.NVTS faces trough periods in FQ4'25/FY2026, with meaningful data center monetization only expected from FY2027 onwards, pending final supplier selection/system design completion by 2026.Management's strategic pivot to high-power/higher-margin markets may be prolonged, with aggressive R&D efforts, restructuring, and expanded US manufacturing likely driving continued lack of profitability.Combined with the expensive valuations, ongoing shareholders' equity dilution, and potential volatility arising from elevated short interest, there remains a minimal margin of safety despite the recent correction. koyu/iStock via Getty Images I previously covered Navitas Semiconductor Corporation (NVTS) in September 2025, discussing how its near-term performance was likely to disappoint, attributed to the softer industrial demand, the overconcentration of revenues from China, and the NVIDIA Corporation (This article was written byJuxtaposed Ideas15K FollowersFollowI am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.Analyst’s Disclosure:I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.