Navitas's SPAC IPO in October 2021 came near the height of the 2021 bull market.
Revenue levels are still in decline despite the recent Nvidia partnership.
Navitas Semiconductor (NASDAQ: NVTS) has emerged as an innovator on the power side of the chip industry. Its gallium nitride (GaN) and silicon carbide (SiC) chips offer a higher level of efficiency compared to traditional silicon semiconductors, while using less energy and occupying less space.
However, despite that value proposition, the stock has not performed well since its introduction in 2021. Knowing that, investors may want to look at where a $10,000 stake from four years ago would leave them today and the stock's future prospects.
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Navitas went public through a special purpose acquisition company (SPAC) in October 2021. If one had invested $10,000 on the day of the merger with the SPAC, they would have around $4,650 today.
Navitas suffered the misfortune of beginning trading near the height of the 2021 bull market. That meant the stock suffered through a massive decline in 2022, and the slide continued until it achieved its all-time low of $1.52 per share in May of this year.
However, the stock has almost quadrupled since that time following the announcement of a partnership with Nvidia. Beginning in 2027, Navitas will help support Nvidia's Kyber data center infrastructure, a new architecture that will support server racks for its upcoming Vera Rubin chip.
Whether this move helps Navitas' investors recover remains unclear. After the announcement, it issued over 21 million additional shares, bringing its outstanding share count to over 213 million, an 11% increase.
Moreover, its financials continue to suffer. In the second quarter of 2025, revenue of $14.5 million dropped 29% from year-ago levels. Also, the $9.5 million to $10.5 million in revenue Navitas forecasted for Q3 would mean a further decline sequentially.
Amid such numbers, prospects for Navitas' stock are still uncertain. Shareholders who invested $10,000 in October 2021 may experience a full recovery or even positive returns with the help of Nvidia. Still, with the recent share dilution and continued uncertainty, it arguably remains risky for anything more than a speculative play in Navitas.
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Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.