A small power-chip company that most investors never tracked closely is now one of the most argued-over names on the Nasdaq.
Navitas Semiconductor Corp (NVTS) spent the past week swinging hard, first on excitement about its place in Nvidia’s AI data center plans, then on a sharp selloff that hit the whole chip sector.
The bigger story sits underneath those price swings. Wall Street’s analysts have put a number on the stock, and it lands far below the price of the shares today.
Why Navitas stock trades far above Wall Street’s target
Navitas closed Friday, June 5, near $25, after touching an all-time high above $33 in late May, TradingView data show.
The average 12-month price target from analysts who cover the stock sits near $14.46, with a consensus rating of hold, StockAnalysis reports. That points to a fall of more than 40% from current levels.
More AI stocks:
- HSBC massively revamps Broadcom’s stock price target
- Jim Cramer sounds the alarm on Marvell
- BofA and Goldman Sachs reset Marvell stock price targets
Of the eight analysts tracking Navitas, two rate it a buy, five say hold, and one says sell, with price targets running from $8 to $21.
The reasoning here is straightforward.
Buyers are paying for what Navitas could potentially achieve in the future as a player in the AI data center power sector, while analysts are pricing in the small revenue and steady losses that it reports today.
Cheng Xin/Getty Images
What Navitas does and how it reached Nvidia’s AI power plans
Navitas, based in Torrance, California, makes power chips built on gallium nitride and silicon carbide.
Those materials switch electricity faster and waste less of it as heat than standard silicon.
On June 3, the company said its 800-volt direct-current power board would feature in Nvidia’s AI Factory MGX showcase at Computex in Taipei, Navitas confirmed.
The 800-volt setup moves power to AI server racks with fewer conversion steps, which cuts wasted electricity and frees up space.
“Power delivery has become one of the most critical challenges,” Navitas CEO Chris Allexandre said in the earnings call, as transcribed by The Motley Fool.
The “Navitas 2.0” pivot to AI data center power
The company is rebuilding itself around high-power markets such as data centers and the grid, a plan it calls Navitas 2.0, while winding down its legacy mobile and consumer business.
First-quarter revenue was just $8.6 million, down about 39% from a year earlier, though up 18% from the prior quarter, according to its SEC filing.
Related: GE Vernova CEO sends rattling message on data centers
The company also booked a net loss of $33.8 million.
Management guided second-quarter revenue to about $10 million, a sign of more sequential growth even as the losses continue.
What triggered the Navitas selloff and the chip-sector slide
The June 5 drop reached well beyond Navitas.
Broadcom’s weak AI sales outlook had already rattled chip stocks, and TheStreet tracked the sector slide that followed.
A stronger-than-expected May jobs report then revived worries that the Federal Reserve will keep interest rates high, which usually hits fast-growing, unprofitable stocks hardest, The Motley Fool reported.
Navitas added its own pressure.
A fresh SEC filing showed it issued more than 3.2 million shares tied to its 2021 merger, with up to 10 million possible by October, Benzinga reported. More shares can dilute the stake of existing holders.
What has to go right before Navitas grows into its price
Even after June 5, Navitas is up about 250% in 2026, far ahead of the broad market and even hot AI chip names.
Marvell, a favorite of the AI trade, is up about 141% year to date.
The stock now carries a valuation of about 137 times estimated next-12-month sales, Barron’s noted. That leaves little room for error.
What investors should watch with Navitas stock
- Orders, not interest: The Nvidia showcase has to turn into real revenue, not just booth traffic.
- Scale: At $8.6 million a quarter, Navitas is tiny next to its roughly $7 billion market value.
- The loss: The company is still burning cash, with about $221 million on hand, according to its earnings call.
- Dilution: Watch how many of the remaining shares get issued by October.
The bottom line on Navitas stock
Navitas has a real product in a real growth market, and the Nvidia link gives it credibility.
However, early reporting on this run flagged tension between hype and numbers.
The stock’s current value already prices in years of success that the financials have not shown, and analysts are openly cautious, with hold as the consensus call and targets far below the current price.
Anyone buying here is paying up for a story that still has to prove itself in revenue and profit, much like the broader AI chip trade.
Related: CoreWeave CEO sends blunt message to Nvidia stock investors
