Why Navitas Semiconductor Stock Crashed in November
Shares in Navitas Semiconductor (NASDAQ: NVTS) declined by 35.1% in November, according to data provided by S&P Global Market Intelligence. The move came as the market took a more negative view of AI-related stocks. One of the market's concerns is that capital spending on AI is forming a bubble that will burst, leaving the valuations of stocks like Navitas exposed. Here's what you need to know before investing in Navitas.
A loss-making small-cap company that's actively pivoting away from its previous core end markets. Navitas CEO Chris Allexandre was crystal clear on the company's last earnings call: "We are deprioritizing lower margin, short life cycle projects, transactional markets and customers such as mobile and selected China-based segment to redeploy capacity and attention to durable high-power program."
The new focus of the company is on high-power solutions for hyperscalers, top-tier customers, and "leaders in our focus markets, AI data centers, performance computing, energy and grid infrastructure, and industrial electrification." These end markets include Navitas' partnership with Nvidia on developing solutions for the next generation of 800V high-voltage direct current (HVDC) data centers, scheduled for 2027.
Source Fool.com
