On July 28, Navitas Semiconductor Corp declined 8.55% in pre-market trading, trading at $10.49/share, with turnover of $1.3978 million. The drop was triggered by Morgan Stanley lowering its price target from $13.70 to $12.60 while maintaining an Underweight rating, combined with Q2 results showing significant year-over-year revenue contraction.

The company reported Q2 adjusted loss of $0.04 per share, in line with consensus estimates, while revenue came in at $10.5 million, modestly beating the $9.97 million estimate but declining 27.6% year-over-year from $14.5 million. For Q3, management guided revenue of $13.5 million (plus or minus $500,000), substantially above the analyst consensus of $11.1 million, citing accelerated demand from AI infrastructure power bottlenecks. The company also expects meaningful volume growth from hyperscale data center customers and XPU platforms in 2027.

Additional headwinds include an unresolved patent infringement lawsuit filed by Wolfspeed alleging that Navitas GaN and SiC products infringe multiple patents. Within the Semiconductors sector, broad weakness was evident, with Micron Technology down 6.49%, Intel down 5.0%, SK hynix down 5.33%, AMD down 4.57%, and NVIDIA down 1.17%.

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