Core Viewpoint - Navitas Semiconductor is facing significant losses and will take time to achieve profitability, leading to a 14.7% drop in share price following its second-quarter earnings report [1][2]. Financial Performance - The earnings report met analyst expectations, but the extent of the losses highlighted the long road ahead for profitability [2]. - The company raised capital by selling 20 million shares, which may dilute existing shareholders' claims on future profits and cash flows [2][3]. Investment Outlook - Investors should recognize that Navitas is a growth stock in its early stages, with potential driven by its partnership with Nvidia for next-generation 800V data centers [4]. - The technology offered by Navitas, including silicon carbide (SiC) and gallium nitride (GaN) solutions, is expected to play a crucial role in the evolving power train architecture of these data centers [4]. Future Projections - CEO Gene Sheridan stated that Navitas' technologies could enable a 100x increase in server rack power capacity for AI data centers, addressing the growing power demand [5]. - Initial customer evaluations are complete, with final engineering samples expected in Q4, and management anticipates final supplier selections and system designs to be completed by 2026, leading to volume production in 2027 [7].