Why Navitas Semiconductor Stock Plummeted by 12% Today

Navitas Semiconductor (NVTS) dropped 12% following second-quarter results that missed across the board. Revenue fell to $10.5 million from $14.5 million in the prior-year period, a 28% year-over-year decline. The company posted an adjusted net loss of $0.95 per share, far worse than the consensus estimate of a $0.04 loss.

The gallium nitride power chip maker is shifting strategy toward high-power AI data center applications, a pivot that hasn't yet translated to revenue stability. Management issued third-quarter guidance projecting $13 million to $14 million in revenue, implying sequential improvement but still below last year's comparable quarter.

The earnings miss drove the sharp selloff as investors weighed whether the company's transition can offset ongoing revenue pressure. The revenue trajectory shows continued volatility even as Navitas targets higher-margin AI infrastructure opportunities.