Why Navitas Semiconductor Stock Is Plummeting Today

Core Viewpoint - Navitas Semiconductor's stock has experienced a significant decline due to disappointing fourth-quarter results and negative market conditions affecting tech and AI stocks [1][4]. Financial Performance - Navitas reported a loss of $0.21 per share on revenue of$18 million for Q4, missing Wall Street's expectations of a loss of $0.14 per share on approximately$19 million in sales [2]. - Revenue for the fourth quarter fell 31% year over year, and the operating loss increased to $39 million from$26.8 million in the same quarter last year [2]. Forward Guidance - For the first quarter, Navitas expects sales to be between $13 million and$15 million, indicating another significant sequential decline [3]. - Management has guided for a gross margin of approximately 38%, a notable increase from the 12.4% gross margin in Q4 and the 34.4% margin for the year [3]. Market Conditions - The decline in Navitas's stock is compounded by broader valuation pressures in the tech sector, driven by macroeconomic concerns such as inflation and potential new tariffs [4]. - Investors are also wary of potential weaker-than-expected results from Nvidia, a key customer for Navitas, which could lead to further volatility in the market [5].