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Navitas’ 110% Rally Puts a 74x Sales Valuation Under the Microscope

Next week’s Q1 report will test whether the AI power-chip story starts to show up in real revenue.

Overview

  • Navitas shares have climbed about 110% in under four months, lifting the price-to-sales multiple to roughly 74x.
  • The jump followed Q1 2026 revenue guidance that beat forecasts and signaled a return to sequential growth.
  • Recent results remain weak, with revenue down about 45% year over year, operating margins near -195%, and free cash flow around -97%.
  • The company makes gallium nitride and silicon carbide power chips for AI data centers and EVs, which the articles say can cut energy loss by up to 40% versus standard silicon.
  • May 5 Q1 results will test a reported $2.4 billion design-win pipeline as incumbents like STMicroelectronics press hard on price.