Navitas Semiconductor’s Stock (NVTS) On The Move Pre-Market

Navitas Semiconductor's stock price (NASDAQ: NVTS) has had a meteoric rise this year, with strategic partnerships and industry tailwinds boosting NVTS to a double up YTD. The question now is whether NVTS may be primed for another leg up, with the stock up 5.15% pre-market.

NVTS has demonstrated it's resilience to trade up at these elevated levels in the past couple of months, consistently trading above the $6 mark, a significant improvement from where it began the year ($3.49). The company's relationship with Nvidia, particularly concerning Nvidia's licensing approval in China has certainly helped.

The collaboration with NVIDIA on 800V HVDC architecture for AI data centers is a significant win, demonstrating Navitas' ability to innovate and capitalize on the growing demand for energy-efficient solutions in AI infrastructure. The recognition from VREMT Energy further validates the company's technological prowess in the electric vehicle sector. Participation in CES 2025, coupled with strong AI sector momentum, also contributed to positive investor sentiment.

Technical analysis also reveals a positive setup. The current price of $7.14 (pre-market) sits comfortably above both the 50-day ($5.30) and 200-day ($3.32) moving averages. This is a sign of bullish momentum, which coupled with above-average trading volume, further supports the argument for a potential breakout. Typically, such consolidation patterns indicate a period of accumulation before the next significant price movement.

However, a closer examination reveals some underlying concerns. While the Nvidia partnership has undoubtedly been a catalyst, analysts are projecting only modest revenue growth for Q2. This discrepancy between market exuberance and projected financial performance raises questions about the sustainability of the current valuation. Looking to the street, the average analyst price target of $4.31 is significantly below the current market price.

The high short interest, currently hovering around 27% of the float, adds another layer of complexity. While a squeeze could potentially amplify any positive catalysts, it also makes the stock more vulnerable to sharp declines if sentiment shifts. The upcoming earnings report on August 4, 2025, will be a critical test. Markets, and analysts, will be keenly watching whether Navitas can deliver the revenue growth needed to justify its elevated valuation and sustain the recent gains.

The stock's recent performance and technical indicators suggest the potential for a breakout, but the stretched valuation and modest revenue growth estimates warrant caution. The upcoming earnings report will be a pivotal moment for NVTS, providing crucial insights into the company's ability to capitalize on its partnerships and deliver sustainable growth.