Although Navitas Semiconductor’s Q2 performance aligned with expectations, weak projections for Q3 have prompted concern among analysts.
Navitas Semiconductor Corp.’s (NVTS) disappointing guidance for the third quarter (Q3) has resulted in the stock receiving a downgrade from the analysts at Craig-Hallum.
Although Navitas’ second-quarter (Q2) performance aligned with expectations, weak projections for Q3 have prompted concern among analysts. Craig-Hallum downgraded Navitas shares to ‘Hold’ from ‘Buy’ and set a new price target of $6, as per TheFly.
Navitas Semiconductor stock traded over 17% lower on Tuesday afternoon. On Stocktwits, the stock experienced an 850% surge in user message count in 24 hours.
The research firm pointed to new U.S. tariffs on silicon carbide (SiC) technology sourced from China and the company’s decision to scale back its presence in mobile and consumer markets as reasons for the weak guidance.
Although Craig-Hallum supports Navitas’ renewed focus on the datacenter space, the firm warned that this pivot could result in several quarters of flat revenue growth until meaningful design wins materialize in 2027.
However, on Stocktwits, retail sentiment around the stock improved to ‘bullish’ from ‘neutral’ territory the previous day. Message volume jumped to ‘high’ from ‘normal’ levels in 24 hours.
One user suggested this is the best opportunity to take long positions in the stock.
Another user called Navitas an “interesting company.”
Morgan Stanley echoed Craig-Hallum’s concerns, cutting its price target on Navitas to $4.40 from $4.60 while maintaining an ‘Underweight’ rating.
The brokerage believes Wall Street’s earnings projections for fiscal years 2025 and 2026 are overly optimistic and likely to be revised downward.
The underperformance expected in the September quarter, driven by both trade headwinds and internal restructuring, is seen as a major reason for the reassessment.
However, Morgan Stanley noted that Navitas’ involvement with Nvidia Corp.(NVDA) offers some potential upside.
Navitas stock has gained over 87% in 2025 and over 119% in the past 12 months.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<