Navitas Semiconductor Stock Forecast: 3-Year Outlook

Navitas Semiconductor, a producer of gallium nitride and silicon carbide chips, has seen its stock price fluctuate significantly since its SPAC-backed IPO in 2021. Despite missing growth forecasts and racking up losses, the stock has bounced back on the news of a partnership with Nvidia. The company's revenue has grown 60% to $37.9 million in 2022 and 109% to $79.5 million in 2023, but adjusted EBITDA remains negative. The stock trades at around $7, but it's uncertain whether it will generate bigger gains and set fresh highs over the next three years.

Navitas Semiconductor (NASDAQ: NVTS), a producer of gallium nitride (GaN) and silicon carbide (SiC) chips, has experienced significant stock price fluctuations since its SPAC-backed IPO in 2021. The company's stock opened at $13 and reached a record high of $22.19 within a month, but subsequently sank to an all-time low of $1.52 on April 4, 2025 [1]. Despite these challenges, Navitas' stock has rebounded, currently trading just above $7, following the announcement of an AI data center partnership with Nvidia (NASDAQ: NVDA) [1].

Navitas generates revenue primarily from its GaNFast Power ICs, which bundle switching, sensing, control, and security features on a single chip. The company expanded into the SiC market through its acquisition of GeneSiC in 2022, and its major customers include Dell Technologies, Changan, and Nvidia [1]. Navitas' revenue grew 60% to $37.9 million in 2022 and 109% to $79.5 million in 2023, but adjusted EBITDA remained negative [1].

Over the next three years, analysts expect Navitas' revenue to grow at a CAGR of 7% from 2024 to 2027, but adjusted EBITDA is expected to stay negative by the final year [1]. The company's enterprise value of $1.27 billion makes it look expensive at 26 times this year's sales [1]. Navitas' valuations are likely being inflated by its deal with Nvidia, with expectations for lower interest rates driving more investors toward speculative stocks [1].

Navitas' stock could underperform the market until it stabilizes its core businesses, but over the long term, it could still be a good play on GaN and SiC chips as they displace traditional silicon chips [1]. However, the Motley Fool Stock Advisor team did not include Navitas Semiconductor in their top 10 best stocks for investors to buy now [1].

References:
[1] https://www.nasdaq.com/articles/where-will-navitas-semiconductor-stock-be-3-years