Navitas Semiconductor Stock: A Turnaround Story Amidst Data Center Deal Optimism

Navitas Semiconductor's stock plummeted to a record low of $1.52 in April, marking a staggering 92% decline from its November 2021 peak of $20.16. The chipmaker's revenue fell drastically short of its ambitious 2024 projection of $308 million, landing at just $83 million. Yet, recent developments have sparked a resurgence, with shares now trading NEAR $6.

The company specializes in gallium nitride (GaN) and silicon carbide (SiC) power chips, which outperform traditional silicon in efficiency and durability. These chips are critical for EV chargers, data centers, and renewable energy systems. Unlike competitors burdened by in-house production costs, Navitas operates as a fabless manufacturer, leveraging third-party foundries.

A pivotal data center deal has reignited investor interest, though questions linger about sustainability. The stock's rebound hinges on execution—can Navitas translate technological promise into consistent revenue growth?