NVTS Stock Forecast & Price Target

Navitas Semiconductor Corp is positioned for long-term growth due to its focus on high-margin markets, particularly data centers and industrial electrification, which are expected to drive revenue inflection in 2027 and beyond. The company projects a stable Non-GAAP gross margin of approximately 38.5%, driven by a favorable mix shift towards higher-value applications, alongside significant investments in the data center sector. With a cash reserve of roughly $160 million and no debt, Navitas is well-equipped to navigate market transitions while capitalizing on the multi-decade electrification trend, creating a positive outlook for its financial performance.

Navitas Semiconductor Corp has reported a significant year-over-year revenue decline of 53% in Q3F25, primarily driven by tariff impacts in China and pricing pressures within the mobile segment, which is further exacerbated by a strategic pivot away from low-margin markets. The company's guidance for Q4F25 projects revenue to drop to $7.0 million, representing a 30.7% sequential decrease and a staggering 61.1% decline year-over-year, indicating a challenging outlook as it shifts focus towards higher-value markets. While management anticipates a reduction in operating expenses, the ongoing transition away from the mobile sector is expected to result in continued revenue declines through 2026, raising concerns about the company’s competitive position and ability to attract customers amidst increased competition.