Published: November 7, 2025
What happened
Navitas Semiconductor (NASDAQ: NVTS) is closing out a volatile week after posting third‑quarter results on November 3 and unveiling its “Navitas 2.0” strategy to shift away from low‑margin consumer electronics toward high‑power markets like AI data centers, energy and grid infrastructure, and industrial electrification. Shares fell again late in the week as investors reacted to an insider sale by the company’s CFO and to fresh skepticism about the stock’s valuation versus fundamentals. 1
By the numbers (Q3 FY2025)
- Revenue:$10.1 million, down 53% year over year and down sequentially from $14.5 million in Q2. 1
- GAAP net loss:$19.2 million; GAAP loss per share:($0.09). 1
- Non‑GAAP results:Gross margin 38.7%; loss per share ($0.05). 1
- Cash and equivalents:$150.6 million as of September 30, 2025. 1
- Q4 outlook:Revenue ~$7.0 million ± $0.25 million, non‑GAAP gross margin ~38.5%, non‑GAAP opex ~ $15 million as Navitas pares low‑power China mobile/consumer exposure and streamlines distribution. 1
Context: Yahoo Finance’s earnings recap noted non‑GAAP EPS in line with consensus and a tiny revenue beat versus expectations, but flagged the continuing operating losses. 2
Strategy check: What “Navitas 2.0” actually changes
Management says “Navitas 2.0” concentrates engineering and sales on higher‑power GaN (gallium nitride) and high‑voltage SiC (silicon carbide) programs tied to AI compute, energy storage, and grid infrastructure. The company also highlighted being recognized by NVIDIA as a power‑semiconductor partner for its next‑gen 800‑volt DC “AI factory” architecture, and it is sampling new 2.3 kV and 3.3 kV SiC modules to energy‑storage and grid customers. 1
That NVIDIA tie‑in has helped sentiment at times this fall, with Barron’s documenting sharp NVTS rallies on news tied to progress in 800‑VDC power delivery for AI systems. Still, those surges now collide with a tougher earnings tape. 3
Insider move: CFO’s ~$1.02M stock sale
On November 5, CFO Todd Glickman sold 96,313 Class A shares at an average price of $10.56, totaling ~$1,017,065, according to filings and multiple outlets that track insider activity. Following the sale, he remained a significant holder. TradingView’s summary—citing the Form 4—adds that the transaction was executed to satisfy tax‑withholding obligations tied to a compensatory award. 4
The stock fell again the next day; MarketBeat flagged a ~10% drop on Nov. 6 amid the insider‑selling headlines. 5
Market reaction this week
- Post‑earnings pressure: Multiple outlets noted steep declines earlier in the week following the report and guidance reset. 6
- After the insider sale: Shares slid again on Thursday, Nov. 6, as investors processed the Form 4 and valuation debate intensified. 5
The bear case in focus
Skeptics argue that even with the NVIDIA halo, losses remain steep and revenues light, leaving the stock vulnerable if the high‑power pivot takes longer than hoped. Simply Wall St. (via Yahoo) underscored persistent losses and questioned whether the premium valuation is justified absent faster top‑line acceleration. A detailed Seeking Alpha note this week labeled “Navitas 2.0” an “AI value trap,” pointing to a gap between fundamentals and the stock’s run‑up. 7
Several roundups also describe mixed analyst sentiment and wide‑ranging price targets, reflecting uncertainty about execution and timelines to scale revenue in AI/datacenter and grid. 5
The bull case to watch
Supporters counter that the product‑market fit is improving as AI data centers migrate from legacy 54V systems to 800V DC architectures, which could favor GaN/SiC power devices on efficiency and density. If design‑in activity converts to volume programs, the non‑GAAP margin profile suggests operating leverage once revenue inflects. The NVIDIA partnership and ongoing sampling of kV‑class SiC modules are the near‑term proof points. 3
Key takeaways for November 7, 2025
- Top‑line reset, losses persist: Q3 revenue fell 53% y/y to $10.1M; GAAP EPS was ($0.09), non‑GAAP EPS ($0.05). Guidance implies a smaller Q4 as the company intentionally deprioritizes lower‑margin consumer shipments. 1
- Pivot is real, but will take time: Navitas is redeploying resources to AI, grid, and industrial electrification; NVIDIA recognition is a meaningful validator, yet conversion to revenue remains the swing factor. 1
- Insider optics matter: The CFO’s ~$1.02M sale—described as tax‑withholding related—added pressure to a stock already sliding post‑earnings. 8
- Valuation debate heats up: Fresh commentary this week questioned whether the stock’s 2025 rally outran fundamentals; investors will look for hard data (design wins → production → revenue) to settle it. 7
What’s next
- Execution on “Navitas 2.0”: Watch for design‑win disclosures, customer qualifications, and initial AI/grid production ramps. Each milestone should narrow the gap between narrative and revenue. 1
- Q4 print and 2026 color: With a low Q4 revenue guide, investors will focus on 2026 growth cadence, gross‑margin durability near ~38–39% non‑GAAP, and operating‑expense discipline. 1
- NVIDIA ecosystem updates: Any concrete product or deployment details around 800V DC AI power will be catalytic for sentiment. 3
Bottom line
As of November 7, 2025, Navitas sits at a crossroads: the strategy pivot and NVIDIA recognition hold real promise in high‑power markets, but Q3’s steep revenue decline, ongoing losses, and insider‑selling optics keep the burden of proof high. Until design‑ins turn into repeat, scaled shipments, volatility is likely to remain the headline. 1
Disclosure: This article is for informational purposes only and does not constitute investment advice.
