Chip stocks fall with Nvidia after data center rev disappointment
In a challenging market environment, Navitas Semiconductor (NVTS) stock has touched a new 52-week low, dipping to $1.74. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 5.69 and holds more cash than debt on its balance sheet. The company, known for its advancements in power electronics, has faced significant headwinds over the past year, reflected in the stock’s performance. Investors have witnessed a substantial decline, with the 1-year change data revealing a sharp decrease of -60.95%. While five analysts have recently revised their earnings upwards for the upcoming period, the stock remains volatile with a beta of 2.22. This downturn highlights the pressures within the semiconductor sector, as Navitas Semiconductor navigates through a period of market skepticism and shifting industry dynamics. For deeper insights into NVTS’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Navitas Semiconductor reported its Q4 2024 earnings, revealing an EPS of -$0.06, which met market expectations, but the company missed its revenue forecast by reporting $18 million against an expected $23.99 million. Despite the shortfall, Navitas achieved a full-year revenue growth of 5%, reaching $83.3 million in 2024. The company announced a significant increase in its customer pipeline, which grew by 92% year-over-year to reach $2.40 billion by December 2024. Baird analysts recently reduced the price target for Navitas Semiconductor to $4.00 from $5.00, while maintaining an Outperform rating, attributing the revision to the company’s expanding customer pipeline. Meanwhile, Jefferies lowered its price target for the company to $2.50 from $3.00, maintaining a Hold position, noting a weakening in end market demand. Additionally, Navitas Semiconductor has appointed KPMG LLP as its new independent auditor, replacing Moss Adams LLP, amid ongoing efforts to address material weaknesses in its internal financial controls. The company has also revised its bylaws to shorten the deadline for stockholder director nominations, aiming to streamline the nomination process for its board of directors.
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