Navitas Semiconductor Plunges 11.09% Amid Nvidia Deal Reassessment

On May 26, 2025, Navitas Semiconductor's stock price plummeted by 11.09% in pre-market trading, marking a significant downturn for the company.

Navitas Semiconductor recently secured a deal with Nvidia, which initially boosted its stock price by over 160%. This partnership was seen as a major win for Navitas, as Nvidia selected the company to assist with its projects. However, the subsequent drop in stock price suggests that investors may be reassessing the long-term implications of this collaboration.

Analysts have also adjusted their price targets for Navitas. Baird, for instance, reduced its target from $5.00 to $4.00, maintaining an "outperform" rating. This adjustment reflects a more cautious outlook on the company's future performance, despite the initial excitement surrounding the Nvidia deal.

Overall, while the Nvidia partnership was a significant milestone for Navitas, the recent stock price drop indicates that investors are exercising caution and waiting for more concrete evidence of the deal's benefits. The company's future performance will be closely watched as it navigates this period of uncertainty.