Why Did Navitas Plunge 14.04%? Revenue Drops 29%

On August 5, 2025, Navitas experienced a significant drop of 14.04% in pre-market trading, reflecting a challenging period for the semiconductor company.

Navitas Semiconductor reported a 29% year-over-year decline in revenue for the second quarter of 2025, totaling $14.5 million. This decline was attributed to ongoing macroeconomic headwinds and inventory challenges, despite a modest 3% sequential revenue growth. The company's earnings report highlighted both the difficulties and opportunities in the current market, with non-GAAP metrics showing a mixed performance.

Navitas's strategic focus on AI data centers and other high-growth sectors has been a key driver of its recent developments. The company has launched new products and technologies aimed at enhancing efficiency and performance in data centers, electric vehicles, and mobile applications. These initiatives are part of Navitas's broader strategy to capitalize on the growing demand for advanced power semiconductors.

Despite the revenue decline, Navitas has been proactive in raising capital to support its growth initiatives. The company recently raised $100 million to fund its AI and data center projects, demonstrating its commitment to innovation and market leadership. However, the high volatility in Navitas's share price and significant insider selling over the past few months have raised concerns among investors about the company's financial health and future prospects.