Broadcom named strategic vendor for Walmart virtualization solutions
Investing.com -- Navitas Semiconductor Corporation (NASDAQ:NVTS) shares plunged 13.3% after the gallium nitride (GaN) and silicon carbide (SiC) power semiconductor company reported a substantial earnings miss for the second quarter, despite slightly exceeding revenue expectations.
The company reported a second quarter adjusted loss of -$0.25 per share, significantly worse than analysts’ expectations of -$0.05 per share. Revenue came in at $14.49 million, narrowly beating the consensus estimate of $14.36 million, but representing a 29.3% decline YoY from $20.5 million in the same quarter last year.
Navitas stock tumbled following the results as investors reacted to the considerable earnings shortfall, despite the company’s strategic pivot toward AI data centers and energy infrastructure markets.
"Despite industry-wide headwinds, I am pleased with our teams’ Q2 performance," said Gene Sheridan, CEO and co-founder. "We are sharpening our focus on AI data centers and energy infrastructure, built on our collaboration with NVIDIA (NASDAQ:NVDA) and other leaders in the sector."
The company highlighted its development collaboration with NVIDIA to support next-generation 800V data centers, which it believes could create a $2.6 billion market potential by 2030. Navitas also announced a new partnership with Powerchip for manufacturing 8" GaN chips to support higher levels of integration with lower costs.
Looking ahead, Navitas provided disappointing guidance for the third quarter, projecting revenue of $10.0 million, plus or minus $0.5 million, citing China tariff risks and a more selective mobile strategy. Non-GAAP gross margin is expected to be 38.5%, plus or minus 50 basis points, with non-GAAP operating expenses of approximately $15.5 million.
The company ended the quarter with $161.2 million in cash and cash equivalents, bolstered by $97 million in net proceeds from a recent share sale that will support its development and growth initiatives in AI data centers and energy infrastructure markets.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.