NEW YORK, June 7, 2026, 18:02 (EDT)
- Navitas finished Friday at $25.08, dropping $5.61 as chip stocks slid.
- The stock picked up support last week as part of Nvidia’s MGX AI infrastructure ecosystem.
- Navitas’s latest 8-K said the company issued 3.28 million shares to cover merger earn-out obligations.
Navitas Semiconductor Corp shares start the week still feeling Friday’s sharp turn lower. The stock had jumped earlier with other Nvidia-linked names, but finished down as the semiconductor sector came under selling pressure.
The power-chip maker’s shares closed at $25.08, off $5.61, after hitting $29.99 during the session. Around 36.7 million shares changed hands, according to market data. The Nasdaq company had a market cap near $5.77 billion.
Navitas was lately seen as a small-cap play on AI power infrastructure. Shares jumped 19.3% Wednesday, then lost 18.2% on June 5, wiping out most of that gain. For the week, the stock finished about 5.7% lower from the previous Friday’s close.
The market selloff took out U.S. chipmakers Friday. Around $1.3 trillion in market value got wiped from the group, with the PHLX Semiconductor Index down 10.3% in its biggest one-day decline since March 2020, according to Reuters. Names tied to AI like Nvidia, Advanced Micro Devices, and Marvell led the slide.
“The semiconductor sector was way overbought,” Wells Fargo chief equity strategist Ohsung Kwon said to Reuters. “I don’t think it’s the end of the semi bull market.” Triple D Trading’s Dennis Dick told Reuters the “blindly buying the dip” trade hit a wall on Friday. Reuters
Navitas got a boost earlier in the week after the company said it joined Nvidia’s partner ceremony in Taipei on May 29. Navitas also showed off an 800 V-to-6 V direct-current power-delivery board at Nvidia’s AI Factory MGX Ecosystem Showcase during Computex 2026. Direct current flows in one direction, and the 800-volt setup is supposed to move power more efficiently for high-power AI data centers.
Navitas said its board uses GaNFast gallium nitride tech. Gallium nitride, or GaN, is a semiconductor that speeds up and boosts power conversion. Silicon carbide, or SiC, is another key power-chip material for heavy-duty systems. The company said the board cuts out the 48-volt intermediate step inside server trays, going for 97.5% peak efficiency.
“As AI workloads keep scaling up and creating huge demand for compute, power delivery is now one of the key challenges,” Navitas CEO Chris Allexandre said in the release. He said working with Nvidia MGX aims to support “megawatt-scale AI server racks” with more power density and better thermal performance. Nasdaq
Investors had a share-count story to weigh too. Navitas disclosed in a June 4 filing it issued 3,283,844 Class A shares as part of its 2021 business-combination obligations. That total included 3,277,438 shares tied to “Triggering Event II.” Those are earn-out shares, or extra stock issued once preset milestones clear. Navitas said 6,561,282 shares are now out from those obligations. Up to 10 million shares could still be issued if price targets hit before Oct. 19.
Focus this week turns from single company news to whether investors keep buying into AI-linked power stocks after last Friday’s drop. Broadcom’s warning on slower AI-chip demand had rattled the sector. Then a strong U.S. jobs report Friday, according to Reuters, fueled worries the Fed could hold rates higher for longer, adding pressure on expensive tech names.
The issues are size and timing. Navitas is still in the early stages of shifting away from mobile and consumer to high-power markets. It posted first-quarter revenue of $8.6 million, with a GAAP operating loss of $27.8 million and cash at $221.0 million as of March 31. The company also flagged execution, technical and customer-adoption risks for its new high-power focus.
Monday’s focus is on whether the stock keeps its footing near Friday’s mid-$24 low as chip buyers weigh if the drop was just a pause or signals more trouble. Navitas saw action this week on the Nvidia link. Now the market is weighing the value.
