Should You Buy Navitas Stock Now? A Major Shift in a Volatile Market 

TradingKey - Navitas Semiconductor (NVTS) is attempting to pivot in a BIG way. Before, they relied heavily on Chinese phones and electronics. Now, they’re piling in to AI data centers. This volatility has caused Navitas stock to fluctuate quite wildly this year. The stock more than doubled at one point before settling down. 

Yet for those investors looking at the current entry point, here’s the witches’ brew of what the key question is: Is this a visionary turnaround in the making, or a speculative play on a company that’s pursuing revenue in the wrong direction now?

The Radical Transformation of Navitas

Navitas is a leading GaN power IC vendor. GaN is changing the game in a world where efficiency is the name of the game. It provides faster charging, higher power density, and less energy consumption compared to silicon solutions. With these advantages, the company can capitalize on the huge power demands of electric vehicles, the renewable energy sector, and AI in particular.

In order to capture this future, Navitas is making a clean break from its past. Nearly 60% of the company’s product sales this year have been to the Chinese mobile and consumer markets. Now, the company is deliberately shutting down some of those older businesses to concentrate on faster-growing fields such as AI data centers. 

This change has had its share of bumps in the road. With the company liquidating its existing inventory, the top line has taken a beating. First three quarters of 2025 Revenue389.6 Revenue for the first three quarters of 2025 was 389.6, down 41% from 653.0 in the same period last year. Operating expenses Amounting to $77.8 million, the company is still not profitable with a $66.4 million operating loss.

Navitas Stock Surges: What the Market Sent on its Way

32% foreign sales and recent revenue growth right around 40%. While a 40% drop in revenue and the departure (CEO Gene Sheridan resigned in August with Chris Allexandre assuming the role) of a founder are not typically catalysts for a stock surge. But navitas stock soared over 100% in 2025, hitting a 52-week high of $17.79 in October after beginning the year at a low of less than $4.

What's the secret sauce?

The biggest driver behind this year’s price movement came from detailed reports on Navitas’ progress in delivering best-in-class power devices optimized for that of the Nvidia ecosystem. Investors are obviously betting that the short-term pain from restructuring will be outweighed by it becoming a key supplier to the ai titan.

Also the company's balance sheet gives it some financial leeway to make this transition. cash Navitas closed the third quarter with $150.6 million in Q3 cash and no debt. He raised another $100 million in a private placement in November, providing the needed “dry powder” to pursue its new plan. Revenue declines are expected to bottom out in Q4, with growth returning in 2026, management forecasts, along with a leaner operating budget.

Should You Buy, Sell or Hold?

Eventually, if Navitas delivers on its promises in the future in the growing AI power supply market, its stock could really take off in the long run. But there's a lot of good news baked into the current valuation. Following the recent retreat to the 7.50 dollar area, the Price-to-Sales (P/S) ratio of the stock remains lofty as a result of its massive upsurge.

In addition, yellow flags also exist. Significant insider selling was disclosed by recent Form 4 filings; board members Ranbir Singh and Gary Kent Wunderlich sold in excess of 300,000 shares combined in December. The truth is that you almost never, if ever, get the status of an immediate “strong buy” right after you’ve sold finger-profits on a 100% rally.

In terms of us normal investors, the safe play is probably just keep Navitas on your radar. A little more than a week has now passed and what we need to see in order to get a better view if the expected bounce back in revenues in 2026 might actually have some footing and is not just wishful thinking, will be the Q1 figures.