Navitas Semiconductor (US:NVTS) ZACKS·2025-10-31 19:21Core Insights - Navitas Semiconductor (NVTS) is expected to report third-quarter 2025 revenues of approximately $10 million, reflecting a year-over-year decline of 53.4% compared to the previous year [1][9] - The consensus estimate for loss per share is set at 5 cents, unchanged over the past 60 days, compared to a loss of 6 cents per share in the same quarter last year [2] Revenue and Earnings Estimates - The Zacks Consensus Estimate for third-quarter revenues is $10.1 million, indicating a significant decline [1] - The earnings per share (EPS) estimates have remained stable at -0.05 for the current quarter and next quarter [3] Factors Influencing Performance - Navitas Semiconductor is positioned to benefit from the increasing demand for power semiconductors, particularly through its GaN and SiC technologies, which are suitable for AI data centers and energy-efficient systems [6][7] - The company has expanded its partnership with Xiaomi to develop a compact and efficient charger, which may positively impact performance [8] Production and Cost Efficiency - The transition to 8-inch GaN wafer production with Powerchip aims to enhance production efficiency, allowing for approximately 80% more chips at lower costs [10][18] Market Challenges - The company faces near-term challenges, including tariff risks in China, reduced demand in the electric vehicle (EV) sector, and a strategic reduction in low-margin mobile business exposure [11][19] - Management anticipates softer quarters ahead before new AI and infrastructure projects can drive higher revenues [19] Stock Performance and Valuation - Navitas Semiconductor shares have increased by 259.4% year-to-date, outperforming the Zacks Electronics - Semiconductors industry growth of 52.4% [12] - The company's forward 12-month price-to-sales (P/S) ratio is significantly higher at 53.43X compared to the industry average of 10.15X, indicating a premium valuation [15][17]