NVTS Stock Forecast & Price Target

Navitas Semiconductor Corp is positioning itself strongly for future growth through significant investments in data center markets, which are expected to drive revenue inflection by 2027, supported by a robust cash position of approximately $160 million and no debt. The company's strategic shift towards higher-value applications such as AI, grid/energy, and industrial electrification is anticipated to yield progressive gross margin improvements, with a projected Non-GAAP gross margin of around 38.5%. Additionally, the ongoing electrification trend and the expansion of its industrial and solar initiatives suggest a healthy pipeline, further reinforcing the company's positive long-term outlook in key high-power markets.

Navitas Semiconductor Corp is currently experiencing significant revenue challenges, with a reported decrease of 53% year-over-year and an anticipated 61.1% decline year-over-year for Q4F25, largely attributed to adverse effects from tariffs in China and a strategic shift away from low-margin mobile markets. Despite a favorable mix shift maintaining gross margins, the company is guiding down its revenue expectations due to this pivot, forecasting a midpoint revenue of $7.0 million, well below prior estimates. Looking ahead, the company's focus on restructuring its market approach may hinder the potential for recovery, projecting further revenue declines as it continues to disengage from the consumer and mobile markets.