Why Navitas Semiconductor Stock Is Getting Hammered This Week

Navitas shares just took a nosedive—here's what's rattling investors.

Market Jitters Hit Tech

Semiconductor stocks aren't for the faint of heart. Navitas got caught in the crossfire of sector-wide profit-taking, reminding everyone that even promising tech plays can get crushed when sentiment shifts.

No Company-Specific News? No Problem.

Traders don’t always need a reason to sell. Sometimes, it’s just a bad week—especially when crypto is pumping and capital rotates toward flashier assets. Classic Wall Street: chasing momentum, not value.

Long-Term Play or Short-Term Pain?

Navitas still leads in GaN power semiconductors. But in a market obsessed with monthly returns, fundamentals can take a backseat. If you believe in the tech, this dip might be a gift. If not? Well, there’s always bitcoin.

Cut down to size

Although the downgrading party wasn't a large, famous financial institution, the MOVE nevertheless impacted Navitas stock, and not in a pleasant way. It was made on Wednesday by CJS Securities's Jonathan Tanwanteng, who reset his recommendation on the stock to market perform -- hold, in other words -- from his previous ranking of market outperform (buy). He did not set a price target.

Image source: Getty Images.

Tanwanteng's reasoning behind the downgrade wasn't immediately apparent, but it was likely influenced by the dispiriting second-quarter results Navitas announced NEAR the start of August.

For the period, management reported that the company suffered a year-over-year revenue decline of nearly 30%. In what was hardly more encouraging news, the company's $0.25 per share net loss was double the deficit in the second quarter of 2024.

Memories of a hot deal fading

The resulting investor sell-off was quite the comedown for the company, which, as recently as May, was riding high on news of a deal with chip giant. The two announced they were teaming up to develop hardware solutions for the coming wave of data centers outfitted to service the needs of artificial intelligence (AI) technology.