New York, Jan 23, 2026, 15:17 EST — Regular session
- NVTS slipped roughly 10% to near $10.15 in afternoon trading, pulling back from Thursday’s sharp gain
- Intel’s stock plunged nearly 18%, weighing heavily on chip sector sentiment; Wolfspeed and onsemi also fell
- Attention shifts to the Fed’s Jan. 27-28 meeting, alongside next week’s megacap tech earnings
Navitas Semiconductor shares dropped roughly 10% on Friday, retreating from a steep gain the previous day as chip stocks slipped following a cautious outlook from Intel that shook investor confidence.
The decline is notable since Navitas ranks among the smaller, high-beta chip stocks traders lean on to gauge AI-driven demand. Ahead of the Fed decision and a wave of major tech earnings, the market has swiftly pulled back from rallies in speculative semiconductor names.
Intel plunged almost 18% following a forecast that missed Wall Street’s revenue and profit expectations for the quarter. The chipmaker cited difficulties meeting demand for server processors used in AI data centers. “There is a lot more confidence in being able to put money into other areas outside of artificial intelligence,” said Michael Kantrowitz, chief investment strategist at Piper Sandler. 1
Navitas slipped $1.14 to $10.15 by 3:17 p.m. EST, following a $11.29 close on Thursday. Trading volume reached roughly 24 million shares by mid-afternoon, down from over 37 million shares the day before. 2
Navitas is caught in a busy spot on the tape: MarketBeat data reveals that roughly 32% of its public float was sold short as of Dec. 31. Short interest represents shares borrowed and sold by investors wagering on a drop; rapid unwinding of these positions can intensify price swings. 3
Peers also dipped. Wolfspeed slid nearly 3.8%, onsemi lost around 1.6%, and Monolithic Power Systems dropped close to 2.8%. The iShares Semiconductor ETF fell about 1.4% during afternoon trading.
Navitas produces gallium nitride and silicon carbide power semiconductors, which find applications in fast chargers, data centers, solar inverters, and electric vehicles, among other sectors. 4
But the situation could backfire. Navitas pulled in roughly $100 million from a November private placement priced at $6.75 a share. The company then filed to register the resale of about 14.8 million shares — which could weigh on the stock if those holders start selling into any rally. (SEC 8-K, 6 )
Macro factors continue to dominate. Every economist surveyed by Reuters expects the Fed to maintain rates between 3.50% and 3.75% at its Jan. 27-28 meeting. “The economic outlook on the surface suggests the Fed should remain on hold,” said Jeremy Schwartz, senior U.S. economist at Nomura. 5
Traders are eyeing Navitas to see if Friday’s pullback turns into a full-blown reversal in this heavily shorted name or just another move in a choppy market. The next key test for risk appetite arrives Jan. 28, when the Fed announces its policy decision.
