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Investing.com -- Navitas Semiconductor (NASDAQ:NVTS) shares tumbled 8.2% in after-hours trading Monday after the next-generation power semiconductor company reported third-quarter results that missed analyst expectations and announced a strategic pivot away from consumer markets.
The company reported third-quarter revenue of $10.11 million, falling short of the $10.79 million analyst consensus and representing a 53.4% decline from $21.7 million in the same quarter last year. Adjusted earnings per share came in at -$0.09, missing analyst estimates of -$0.05.
Navitas announced a strategic shift dubbed "Navitas 2.0," redirecting resources from consumer and mobile markets toward higher-power applications including AI data centers, performance computing, energy infrastructure, and industrial electrification. The company cited these markets as offering faster growth and higher profit margins.
"I’m excited to be leading the Navitas 2.0 team at this pivotal moment, as demand accelerates across high-power semiconductor markets for AI data centers, performance computing, energy and grid infrastructure, and industrial electrification," said Chris Allexandre, President and CEO of Navitas.
The company’s outlook for the fourth quarter was notably weak, with revenue guidance of $7.0 million (plus or minus $0.25 million), reflecting the company’s decision to deprioritize "low power, lower profit China mobile & consumer business" and reduce channel inventory. Non-GAAP gross margin is expected to be approximately 38.5%.
Navitas highlighted its recognition by NVIDIA as a power semiconductor partner for next-generation 800V DC architecture in AI factory computing, showcasing the company’s GaN and high-voltage SiC technologies.
The company ended the quarter with $150.6 million in cash and cash equivalents as of September 30, 2025.
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