Navitas Semiconductor Corp (NVTS) experienced a pre-market plunge of 5.12% on Thursday, extending a sell-off that began in extended trading sessions.
The decline follows a sharp intraday rally of over 20% on Wednesday, which was triggered by news that the gallium nitride power semiconductor leader was selected as an official partner in NVIDIA's MGX ecosystem to advance 800V DC artificial intelligence infrastructure. This partnership represents a significant endorsement for Navitas' entry into next-generation AI data center power infrastructure.
However, the rapid appreciation prompted immediate profit-taking by investors in after-hours and overnight sessions. Additional factors contributing to the bearish sentiment include recent large-scale director share sales, a widening per-share loss in the first quarter despite revenue beating expectations, and dilution concerns from a planned offering of up to $125 million in Class A common stock.
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