Navitas Stock Tries To Recover After Steepest Drop In Nearly A Week — Why Retail Isn't Still Convinced

Retail investors flag a lack of order visibility.

• Navitas has appointed Lattice Semiconductor’s Tonya Stevens as its new CFO; she starts on March 20.
• Navitas shares have traded in a tight range since last October, but with sharp swings, reflecting an uncertain investor outlook.
• After Tuesday’s over 6% drop, Stocktwits sentiment for NVTS flipped to ‘bearish’ from ‘bullish.’

Navitas Semiconductor Corp's shares inched 2.3% higher in Wednesday's early premarket trading following their worst session in nearly a week, even after regulatory filings showed outgoing CFO Todd Glickman sold company shares worth $1.1 million.

Glickman is on his way out, and the chip company last week named Lattice Semiconductor's Tonya Stevens as its CFO, effective March 30.

Stocktwits sentiment for NVTS flipped to 'bearish' early Wednesday, from 'bullish' the previous day.

Navitas showcased a new power delivery board (PDB) at the Nvidia GTC conference earlier this week. The PDB is based on the company's GaNFast technology and can perform direct conversion from 800V to 6V in a single power stage.

The company has announced several products and updates in recent months, including new power chips for data centers, but traders question the lack of visibility into orders.

“$NVTS we're making all these great chips, is anyone buying them?” questioned a user. “I don’t hear any deals announced, just announcements about new advanced chips.”

Navitas shares have traded in a tight range since last October, but with sharp swings, reflecting an uncertain investor outlook. Year-to-date, the stock is up 37.5%. On the other hand, short interest in the stock has climbed from this year’s low of 15.9% at the end of January to 19.1% on Tuesday, per Koyfin.

Navitas, which designs and sells advanced power devices, has caught investors' attention for its gallium nitride (GaN) and silicon carbide (SiC) semiconductors, which make power conversion in data centers, electric vehicles, renewable energy, and industrial systems more efficient. 

Many still believe that new chips could capture growth in AI infrastructure and energy markets, where demand for efficient power solutions is rising rapidly.

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