Navitas Semiconductor The AI Pivot Is Working but the Valuation Still Runs Ahead
Rating Sell | Target $6.75 | Price $8.89 | Expected return -24%
Summary
Q2 revenue rose 22% sequentially to $10.5Mn and beat the $10.0Mn consensus, while non-GAAP gross margin improved 50 basis points to 39.5%.
The high-power pivot is now supported by reported growth: high-power revenue increased more than 50% year over year, and management expects AI infrastructure to exceed one-third of fourth-quarter sales.
My base case values Navitas at 20x 2027 revenue and produces a $6.75 target, about 24% below the $8.89 share price on 19 October 2026.
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