Navitas Semiconductor (US:NVTS) ZACKS·2026-02-19 13:45Core Insights - Navitas Semiconductor (NVTS) is set to report its fourth-quarter 2025 results on February 24, 2026, with anticipated revenues of approximately $7 million, indicating a year-over-year decline of 61.9% compared to the previous year [1][2] - The consensus estimate for loss is pegged at 5 cents per share, unchanged over the past 60 days, while NVTS reported a loss of 6 cents per share in the same quarter last year [2] Financial Performance - NVTS has matched the Zacks Consensus Estimate for bottom-line results in each of the last four quarters [3] - The company has an Earnings ESP of 0.00% and currently holds a Zacks Rank 3 (Hold) [4][5] Market Position and Strategy - Navitas Semiconductor is focusing on high-power markets, including AI data centers and industrial electrification, leveraging its GaN and SiC technologies [6][7] - The company is part of NVIDIA's new 800-volt AI factory ecosystem, which requires advanced power electronics, creating opportunities for NVTS [8][10] Challenges and Risks - The company is facing near-term challenges in its China business, including tariff risks and a decision to exit its low-margin mobile business, which may negatively impact financial performance [11][21] - Despite these challenges, NVTS has seen a significant stock price increase of 259.4% over the past year, outperforming the Zacks Electronics - Semiconductors industry growth of 52.4% [12] Valuation Metrics - NVTS trades at a forward price-to-sales (P/S) ratio of 45.25X, significantly higher than the industry average of 8.2X and compared to peers like Lam Research and Applied Materials [16][19] Long-term Outlook - The company is well-positioned to benefit from the growth in AI and data center markets, with its GaN and SiC products playing a crucial role in NVIDIA's new power setup [20][22] - Management anticipates some softer quarters before new projects begin to generate higher revenues, indicating a cautious but optimistic long-term outlook [21][22]