Is Navitas Semiconductor Stock a Buy Now?

Group 1 - Navitas Semiconductor's stock fell to an all-time low of $1.52 per share in April, representing a 92% decline from its peak of $20.16 in November 2021 due to missing long-term forecasts [1] - Before going public, Navitas projected revenue growth from $12 million in 2020 to $308 million in 2024, but actual revenue in 2024 was only $83 million [2] - Currently, Navitas' stock trades around $6, having increased significantly over the past five months following a new data center deal with Nvidia [3] Group 2 - Navitas specializes in producing gallium nitride (GaN) and silicon carbide (SiC) power chips, which are more efficient and durable than traditional silicon chips, making them ideal for various applications including EV chargers and data centers [4] - The company generates most of its revenue from GaNFast Power ICs and expanded its SiC market presence through the acquisition of GeneSiC in 2022 [5] - Key customers include major PC manufacturers like Dell and Lenovo, smartphone companies such as Samsung and Xiaomi, and Chinese EV makers like BYD and Changan [6] Group 3 - Navitas experienced sales growth in 2022 and 2023, but this growth has stalled in 2024 due to the dissolution of a partnership with a key distributor and declining orders from its EV, solar, and industrial customers [7] - Sales in China, which accounted for 60% of revenue in 2024, are subject to unpredictable tariffs, further impacting growth [7] - A new partnership with Nvidia may provide opportunities for future growth, but current valuations may already reflect much of this potential [8]