Overview
- Navitas shares fell about 18% on Friday after a broad sell-off tied to a stronger-than-expected May jobs report that rekindled investor concern the Federal Reserve could raise rates.
- The company confirmed on June 3 that its 800-volt DC gallium-nitride power board would appear in Nvidia’s MGX showcase at Computex, a placement that had driven recent investor enthusiasm.
- Navitas reported first-quarter revenue of $8.6 million and a net loss of $33.8 million, and it has roughly $221 million in cash on hand while trading at a high valuation versus projected sales.
- A recent SEC filing shows more than 3.2 million shares were issued tied to a 2021 merger with up to 10 million possible by October, creating a clear dilution risk for current holders.
- The key question for investors is whether Nvidia-linked demonstrations and Navitas’s shift to data-center power will produce multi-customer design wins and volume orders large enough to justify the stock’s rapid gains and counter macro and execution risks.