• Navitas Semiconductor (NasdaqGM:NVTS) is exiting its low margin consumer chip business to focus on AI data center power solutions.
• The company is prioritizing next generation architectures, including 800V platforms aimed at large scale computing workloads.
• This shift represents a material change in how Navitas allocates resources across its product portfolio.

For investors watching the AI supply chain, this move positions Navitas within the broader discussion around power technology for high performance computing. The shares recently closed at $11.29, with the stock up 12.9% over the past week, 47.4% over the past month, and 237.0% over the past year. These returns indicate that expectations around the company have changed meaningfully in a relatively short period of time.

By stepping away from lower margin consumer chips and focusing on AI data centers, Navitas is tying its strategy more closely to large, power-hungry compute platforms such as 800V architectures. For investors, key questions include how effectively the company can execute in this more focused segment and how its technology is adopted as major chipmakers adjust their power requirements.

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Quick Assessment

• ❌ Price vs Analyst Target: At $11.29, the share price sits above the US$8.28 analyst target. This suggests expectations in the market are higher than the current consensus.
• ❌ Simply Wall St Valuation: DCF valuation status is unknown, so there is no clear undervalued or overvalued signal to rely on here.
• ✅ Recent Momentum: The stock has returned about 47% over the last 30 days, which points to strong recent momentum into this AI focused pivot.

Check out Simply Wall St's in depth valuation analysis for Navitas Semiconductor.

Key Considerations

• 📊 The exit from low margin consumer chips concentrates the story on AI data center power, so your thesis now leans more on that end market.
• 📊 Keep an eye on revenue progression, margins in data center products, and how the P/E compares with the 43.7x industry average over time.
• ⚠️ The company is loss making with net income of US$124.998m and carries four flagged risks, including recent dilution and share price volatility.

Dig Deeper

For the full picture including more risks and rewards, check out the complete Navitas Semiconductor analysis.

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.