Why Navitas Semiconductor Stock Plummeted by 12% Today

Navitas Semiconductor shares fell more than 12% after the company reported second-quarter results that disappointed investors on the bottom line. Revenue came in at $10.5 million, down from $14.5 million a year earlier, and adjusted net income of $9.3 million ($0.95 per share) missed analyst expectations for a much smaller loss. While the company highlighted 22% sequential revenue growth and progress in its shift toward higher-power AI/data center applications, the steep year-over-year revenue decline and earnings miss overshadowed the outlook. For the third quarter, Navitas guided revenue to $13 million-$14 million and adjusted gross margin just below 40%, but provided no net income guidance. The market reaction suggests investors remain skeptical that the strategic pivot can translate into consistent growth soon.