Navitas Semiconductor Rises 1,000% as Nvts Stock Trails Revenue
Navitas Semiconductor’s nvts stock has risen roughly 1,000% over the past twelve months even as revenue fell nearly 40% year over year in the most recent quarter. The company is being valued against its role in AI power infrastructure while its current results still show a steep drop in sales.
The tension comes from what Navitas sells and what it has been exiting. The company makes gallium nitride and silicon carbide power semiconductors used to control electricity flow in data centers, EV chargers, solar inverters, and industrial equipment, and it left low-margin mobile and consumer business in China before replacement high-power revenue fully scaled.
Navitas Semiconductor margins
Navitas’ gross margin profile shows how uneven that transition has been. Gross margins started at 45% in 2021, fell to 31% in 2022 as mobile volumes were sold at lower prices to fill fab capacity, recovered to 39% in 2023, and drifted back toward 31% by 2025 as mobile wound down before high-power could scale up.
In the most recent quarter, non-GAAP gross margin came in at 39%. That leaves the company below the level it reached in 2023, even after the latest improvement.
AI infrastructure revenue
The revenue mix is changing, but not evenly. High-power revenue grew 35% year over year in the most recent quarter, and AI infrastructure revenue rose 50% sequentially. Those figures sit inside a quarter where total revenue still fell nearly 40% year over year.
That gap is why the stock and the operating results point in different directions. Investors have pushed the share price higher as AI infrastructure demand has become part of the company’s case, while the business is still moving through a reset away from lower-margin lines.
Free cash flow outlook
Free cash flow adds another constraint. Navitas has burned between $44 million and $66 million in free cash flow every year since going public, and it has not had a year of positive free cash flow since then.
The estimates point to improvement, with free cash flow moving from roughly -$61 million in 2026 toward -$22 million by 2028. Breakeven depends on quarterly revenue scaling into the high-$30 million range, and the model behind the stock case assumes roughly 45% annual growth, profitability, and a later re-rating as the business matures.
For readers tracking nvts stock, the central issue is straightforward: the market is already pricing in a long runway, while the company still needs higher-power revenue to replace what it gave up in China and to get to breakeven. Until that scale shows up in the quarterly numbers, the share price is moving faster than the business itself.
