Movement Alert|Navitas Semiconductor Corp Rises 10.15% in Regular Trading, Q3 Revenue Guidance Significantly Beats Expectations Amid AI Power Bottleneck Tailwinds

Market Focus07-29

On July 29, Navitas Semiconductor Corp rose 10.15% in regular trading, trading at $10.815/share, with turnover of $40.37 million. The rally follows the company's Q3 revenue guidance of $13.5 million, which significantly exceeded the analyst consensus estimate of $11.1 million by approximately 22%.

While Q2 revenue of $10.5 million came in modestly above the $9.97 million estimate, it still reflected a 27.6% year-over-year decline. Adjusted EPS of -$0.04 met expectations. Critically, management highlighted that power bottlenecks in AI infrastructure are accelerating demand for its GaN and SiC power devices, with hyperscaler customers and XPU platform volumes expected to ramp meaningfully in 2027.

The stock had declined over 11% the prior session after Morgan Stanley cut its price target to $12.60 from $13.70 while maintaining an Underweight rating. Additional overhang remains from a patent infringement lawsuit filed by Wolfspeed in early July targeting Navitas's GaN and SiC product lines. The current rebound appears to reflect market repricing around the stronger-than-expected forward guidance.

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