Navitas Semiconductor (NVTS) Up 24.3% Since Last Earnings Report: Can It Continue?

It has been about a month since the last earnings report for Navitas Semiconductor Corporation (NVTS). Shares have added about 24.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Navitas Semiconductor due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Navitas Semiconductor Corporation before we dive into how investors and analysts have reacted as of late.

NVTS Q2 Earnings Meet Estimates, Revenues Beat on High-Power Growth

Navitas Semiconductor reported second-quarter 2026 non-GAAP loss of 4 cents per share, in line with the Zacks Consensus Estimate. The figure was narrower than the year-ago quarter’s loss of 5 cents.

Navitas Semiconductor’s second-quarter 2026 revenues of $10.5 million declined 27.3% year over year but beat the consensus estimate by 5.8%. The top line increased 22% sequentially as revenues from high-power markets grew more than 50% year over year. Management also highlighted an expanding backlog and record book-to-bill, reflecting stronger demand across AI data centers and grid and energy infrastructure.

NVTS Builds Momentum in High-Power Markets

High-power products accounted for the majority of second-quarter revenues, while mobile and low-end consumer sales declined both sequentially and year over year. Both gallium nitride, or GaN, and silicon carbide, or SiC, contributed to the sequential improvement.

The company expects mobile and low-end consumer revenues to become insignificant by year-end. AI infrastructure, which combines data centers with grid and energy infrastructure, is projected to represent more than one-third of fourth-quarter sales.

NVTS Targets Multiple AI Power Inflections

The first growth phase is already underway as higher rack power and density requirements drive silicon-to-SiC replacement in AC/DC power supply units. Management expects this trend to accelerate in the second half of 2026 and the first half of 2027.

A second phase is expected around mid-2027 as power shelves and battery backup units move into 800-volt sidecar racks. Native 800-volt power delivery to compute trays should follow, increasing GaN content near GPUs and other processors, while solid-state transformers could expand ultra-high-voltage SiC and GaN opportunities from 2028.

Navitas Improves Mix and Gross Margin

Non-GAAP gross margin expanded 50 basis points sequentially and 100 basis points year over year to 39.5%. The improvement reflected a greater contribution from higher-value high-power products and better scale.

Non-GAAP operating expenses were $15.5 million, down from $16.1 million a year earlier. The company recorded a non-GAAP operating loss of $11.4 million compared with a loss of $11.7 million in the prior quarter and $10.6 million in the year-ago period.

NVTS Strengthens Liquidity Ahead of Growth

Navitas ended the first quarter of 2026 with $557 million in cash and cash equivalents, up from $221 million at the end of the first quarter, primarily due to approximately $373 million of capital raised during the period. Navitas remained debt-free.

Inventory increased to $19.5 million from $14.9 million as the company began building TSMC wafer buffers. Prepaid expenses and other current assets also rose by roughly $15 million, reflecting planned wafer purchases to support expected AI data center demand and the transition to U.S.-based GaN manufacturing.

NVTS’ Outlook Calls for Continued Sequential Growth in Q3

For the third quarter of 2026, Navitas expects revenues of $13 million to $14 million. The $13.5 million midpoint implies 28% sequential growth and a return to year-over-year expansion. The Zacks Consensus Estimate for revenues is currently pegged at $11.38 million, indicating a 12.5% increase from the year-ago reported quarter.

Non-GAAP gross margin is projected at 38.7% to 40.7%. Non-GAAP operating expenses are expected between $15.5 million and $17.5 million as the company increases spending on product development, customer support and supply-chain readiness.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

The consensus estimate has shifted 25% due to these changes.

VGM Scores

At this time, Navitas Semiconductor has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Navitas Semiconductor has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

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