New York, May 26, 2026, 05:05 EDT
- Navitas finished the previous regular session at $29.25, up about 20%. Premarket trading early Tuesday had the stock near $32.
- Two SEC filings from May 22 are putting attention on merger earnout shares, a type of stock payout connected to price targets.
- Shares moved on AI data-center power hopes, but Navitas stays in the red and has issued new stock under its SPAC-era agreement.
Navitas Semiconductor shares were pointed up early Tuesday, building on a fast rally that’s made the power-chip maker a volatile name in AI infrastructure. The stock was changing hands around $32 in premarket action at 5:00 a.m. ET, a 9.4% jump from Friday’s close. Last regular session, shares finished at $29.25.
Timing is key. Nasdaq was closed Monday, May 25 for Memorial Day, leaving Friday as the last full session. The market’s reaction at Tuesday’s open will show if investors stick with the rally or decide to lock in gains after the long break.
Navitas didn’t announce a new product order in its latest hard filing, but detailed stock moves instead. The company said in a May 22 filing it has issued 3,277,438 Class A shares to meet “Triggering Event I” in its 2021 merger deal. The agreement lets former Legacy Navitas holders and some others get up to 10 million shares, if set stock price goals are reached before Oct. 19, 2026. These so-called earnout shares are paid when certain milestones are hit.
Navitas and Live Oak Sponsor Partners II have settled a dispute over sponsor earnout shares from the earlier SPAC deal, according to a May 22 filing. The agreement lets 726,225 sponsor earnout shares vest and become freely transferable. Another 421,000 shares had already been counted as earned. 115,775 shares will be forfeited.
The rally cuts both ways. The filings take care of some SPAC-era overhang, but they also warn investors that more shares can enter the float if the price keeps going up.
Bullish investors look to power. Navitas makes gallium nitride (GaN) and silicon carbide (SiC) semis, both designed to move electricity more efficiently than regular silicon in high-power gear. The company said this month it plans to show AI data center power products at PCIM 2026. That includes a 20-kilowatt 800-volt-to-6-volt board with 97.5% peak efficiency and a 10-kilowatt 800-volt-to-50-volt platform at 98.5%.
Nvidia is driving a move to 800-volt direct-current power for AI data centers, planning 1-megawatt racks starting in 2027. Navitas appears on Nvidia’s list of silicon providers for that ecosystem, joined by bigger players like Infineon, Onsemi and Texas Instruments. TI announced its separate 800 VDC power system with Nvidia back in March.
Navitas’ latest numbers show mixed trends. First-quarter revenue jumped 18% from the previous quarter to $8.6 million, but that’s down from $14.0 million a year ago. President and CEO Chris Allexandre said the quarter was a “return to top-line sequential growth.” CFO Tonya Stevens talked about “strong momentum and growth” in key high-power markets. GlobeNewswire
Wall Street remains cautious. The average 12-month analyst target is $14.46, Investing.com data showed, still under the most recent closing price. Analyst ratings split: two have the stock at buy, five at hold, one at sell. Needham’s N. Quinn Bolton bumped his target to $21 after the results. Rosenblatt’s Kevin Cassidy raised to $13, recent analyst-tracking shows.
The risks are clear. Navitas reported a first-quarter net loss of $33.8 million, wider than $16.8 million last year, and burned through $16.4 million in operating cash. Its 10-Q says it will likely keep posting operating losses and negative cash flow, but management believes its current cash should cover operations for the foreseeable future.
The risk is if AI data-center power rollouts run slower than investors hope, or if new designs fail to bring in enough revenue to justify a market cap over $6 billion. If more earnout or financing shares get issued, existing shareholders would end up with a smaller stake in the company.
Management’s next stop with investors is at the Craig-Hallum conference on May 28, then the Evercore Global TMT Conference on June 3. The PCIM product showcase in Germany runs June 9-11. Markets will get an early take when trading starts Tuesday.
