Why Is NVTS Stock Falling Nearly 5% In Overnight Trading?

Wolfspeed said it sued Navitas over patent infringement.

• Wolfspeed alleges that a broad range of Navitas products, including its gallium nitride (GaN) chips, infringe multiple of Wolfspeed's patents. 
• Navitas and Wolfspeed are both focused on wide-bandgap power semiconductors, which use gallium nitride (GaN) and silicon carbide (SiC) to deliver higher efficiency, faster switching and lower power losses.
• Stocktwits sentiment for NVTS shifted to ‘neutral’ from ‘bearish.’

Navitas Semiconductor Corp. stock declined 4.6% in overnight trading ahead of Wednesday after rival Wolfspeed said it sued the chipmaker for patent infringement.

Wolfspeed said in a press release, posted after the markets closed on Tuesday, that a broad range of Navitas products, including its gallium nitride (GaN) chips, infringes on multiple Wolfspeed patents. 

"Protecting our patent portfolio is a strategic priority for the company and our shareholders. This action reflects our commitment to enforcing our rights and protecting continued investment in next-generation SiC and GaN technologies,” Wolfspeed CEO Robert Feurle said in a statement.

Navitas has yet to issue a response. Wolfspeed stock was 0.8% overnight.

Navitas’s And Wolfspeed’s Power Chip Portfolios

Navitas and Wolfspeed are both focused on wide-bandgap power semiconductors, which use GaN and silicon carbide (SiC) to deliver higher efficiency, faster switching speeds, and lower power losses than traditional silicon chips. 

Those technologies are increasingly used in AI data centers, electric vehicles, renewable energy systems and industrial power electronics. 

The companies overlap most in the SiC market, though Navitas remains primarily a GaN specialist. Wolfspeed, by contrast, has long been regarded as the industry’s pure-play SiC leader. Unlike fabless Navitas, Wolfspeed owns and operates its manufacturing facilities and is larger than both.

Navitas, however, has been growing rapidly from a smaller base and has recently attracted significant attention as investors bet specialized power chips will play a critical role in the next generation of AI data centers. Although the NVTS stock declined by 55% from its April peak, it remains 95% above its level at the start of 2026.

NVTS Stock Move, Retail View

The NVTS ticker was trending among the top five on Stocktwits late Tuesday, even as retail sentiment for the stock shifted to ‘neutral’ from ‘bearish’ the previous day. 

The sentiment for WOLF shifted to ‘bearish’ from ‘extremely bearish.’ To be sure, both stocks fell sharply earlier in the regular sessions, tracking a broad selloff in chip stocks following Samsung’s preliminary results. 

“$WOLF filed a patent infringement lawsuit against $NVTS in Delaware. This keeps the legal overhang on both names and adds another headline risk for Navitas. For traders, it’s now about how the market prices litigation uncertainty vs. the underlying SiC story,” a trader wrote.

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