Overview
- Navitas shares slid about 18% in the session that followed strong May payrolls and a broader tech sell-off, marking a sharp pullback from a year-to-date gain of roughly 250%.
- Market reaction was driven by investor concern that stronger jobs data makes higher interest rates more likely, which tends to hit unprofitable, high-growth chip stocks hardest.
- The rally that lifted the stock was tied to Navitas confirming its 800 V→6 V gallium-nitride power board will appear in NVIDIA’s AI Factory MGX showcase, a technical validation for data-center power delivery.
- Fundamentals remain weak: Navitas reported Q1 revenue of $8.6 million, a $33.8 million net loss, guidance of about $10 million for Q2, and roughly $221 million in cash on hand.
- Investors also reacted to an SEC filing showing more than 3.2 million shares issued under a merger agreement with up to 10 million possible by October, and analysts’ average 12-month target sits far below current prices, leaving the stock dependent on converting the NVIDIA demo into multi-customer design wins and volume sales.