Recent moves by Navitas Semiconductor (NVTS) to pivot away from lower-margin mobile and consumer products toward data center infrastructure and industrial electrification have put its repositioning in focus for investors watching the AI hardware supply chain.

The recent pivot toward data center infrastructure and industrial electrification has been playing out against volatile trading, with a 1-day share price return of 4.99% to US$9.05, a 30-day share price return of 8.0%, and a 1-year total shareholder return of about 200.66%. However, the 3-year total shareholder return of 57.94% and 5-year total shareholder return of a 21.85% loss highlight how momentum has been strong in the shorter term while the longer journey has been mixed.

If this kind of repositioning around AI hardware has caught your attention, it could be a useful time to see what else is happening across high growth tech and AI stocks and compare different ways companies are approaching similar themes.

With shares around US$9.05 after a very strong 1 year run but a mixed 3 to 5 year record, the key question is whether Navitas is still misunderstood by the market or if future growth is already priced in.

Most Popular Narrative: 9% Overvalued

With Navitas Semiconductor last closing at $9.05 against a widely followed fair value estimate of $8.28, the current setup leans toward a richer pricing story.

The analysts have a consensus price target of $6.738 for Navitas Semiconductor based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $8.0, and the most bearish reporting a price target of just $4.4.

Curious why a company still reporting heavy losses is modeled with strong revenue expansion, higher margins, and a rich future earnings multiple baked in? The narrative walks through how those ingredients combine with a discount rate just above 10% to land on that $8.28 fair value. If you want to see exactly which growth and profitability paths need to line up to support that outcome, the full story lays those assumptions out step by step.

Result: Fair Value of $8.28 (OVERVALUED)

However, the thesis still depends on a scenario in which current revenue softness in EV, solar, and industrial markets, along with cost cutting that may constrain R&D, does not derail the overall investment case.

Build Your Own Navitas Semiconductor Narrative

If you look at these numbers and reach a different conclusion, or simply prefer to test your own assumptions, you can build a custom view in just a few minutes with Do it your way.

A great starting point for your Navitas Semiconductor research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.