Navitas Semiconductor Corp's stock plummeted 8.27% during intraday trading on Thursday, as the company faced significant selling pressure.
The decline was primarily driven by persistent market concerns over the demand outlook for the artificial intelligence (AI) supply chain. Negative sentiment has continued to weigh on AI-related stocks after OpenAI's revenue targets previously fell short of expectations, impacting components of the AI ecosystem like Navitas Semiconductor.
Contributing to the cautious sentiment, Morgan Stanley raised its price target on Navitas but maintained an Underweight rating on the shares, reflecting ongoing concerns about the stock's prospects amidst the challenging industry backdrop.