Assessing Navitas Semiconductor (NVTS) Valuation After A Sharp 1 Year Share Price Return
Navitas Semiconductor (NVTS) has recently drawn investor attention after its shares closed at US$8.38, with short term performance mixed across the past week, month and past 3 months, and a sharply positive 1 year total return.
See our latest analysis for Navitas Semiconductor.
The recent 1 day share price return of 17.37% and 7 day share price return of 16.23% sit against a 30 day share price return of an 11.60% decline. The 1 year total shareholder return of 97.18% and 3 year total shareholder return of 106.91% indicate that momentum has been building over a longer horizon as investors reassess growth potential and risk.
If Navitas has caught your eye, it could be a good moment to see what else is moving in high growth tech and AI, including high growth tech and AI stocks.
With Navitas delivering a sharp 1 year return and trading close to the current analyst price target of US$8.28, the key question now is whether there is still a buying opportunity here or if the market is already pricing in future growth.
Most Popular Narrative: 1% Overvalued
With Navitas closing at US$8.38 against a narrative fair value of US$8.28, the current price sits slightly above that framework, which leans on long term data center and EV adoption assumptions.
Navitas Semiconductor's GaN business experienced significant growth in 2024, with a 50% increase in revenues driven by strong demand in mobile, consumer appliances, and data centers.
Curious what kind of revenue ramp, margin lift, and share count changes are baked into that fair value? The narrative connects aggressive top line expansion, margin improvement, and a rich future earnings multiple to arrive at its US$8.28 estimate.
Result: Fair Value of $8.28 (OVERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, there are clear pressure points, including recent revenue softness in key end markets and a reliance on elevated future P/E multiples. These could reset if execution wobbles.
Find out about the key risks to this Navitas Semiconductor narrative.
Build Your Own Navitas Semiconductor Narrative
If you see the set up differently or prefer to stick with your own work, you can stress test the numbers and build a full view yourself in a few minutes, starting with Do it your way
A great starting point for your Navitas Semiconductor research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.
Ready For More Investment Ideas?
If Navitas is on your radar, do not stop there. Broaden your watchlist with a few focused idea sets that could help sharpen your next move.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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