Divergent Signals Emerge for Navitas Semiconductor

Investors in chipmaker Navitas Semiconductor Corporation are currently weighing contrasting developments. On one hand, a company director has executed substantial share sales. Concurrently, the firm is advancing strategic product innovations and key global partnerships, with a clear focus on the high-growth artificial intelligence data center market.

The company's most recent earnings report underscores a period of deliberate transition. For the third quarter of 2025, Navitas posted a year-over-year revenue decline of 53.4%, with sales reaching $10.1 million. Its adjusted loss per share came in at $0.09. Management attributes these figures to an intentional shift away from lower-margin, consumer-adjacent markets.

To fund its expansion into target sectors, Navitas completed a private placement of $100 million in equity in early November. Despite the near-term revenue softness, the market has responded positively to the strategic redirection. The share price has more than doubled year-to-date, showing a gain of 165% as of December 4, and recently posted a single-day advance of nearly 7%. The company's current market valuation stands at approximately $2.19 billion, reflecting investor expectations for its new strategic focus. Upcoming quarterly reports will indicate whether this pivot toward AI and energy infrastructure begins to yield the anticipated results.

Insider Transaction Points to Share Sale

Regulatory filings have revealed significant selling activity by a company insider. Brian Long, a member of the board of directors, disposed of 48,165 shares on December 3 at prices between $8.50 and $8.5050, generating total proceeds of roughly $409,426. These transactions followed earlier sales on December 1 and 2, during which Long sold an aggregate of approximately 164,184 shares worth about $1.4 million. Collectively, these moves represent a notable reduction in his direct holdings.

Should investors sell immediately? Or is it worth buying Navitas Semiconductor Corporation?

Product and Partnership Strategy Advances

Amid the insider selling, Navitas is pushing forward with core technological and commercial initiatives. Since December 1, sample units of its new 3300V and 2300V silicon carbide MOSFETs have become available. These high-performance semiconductors are designed for applications in AI data centers, network infrastructure, and energy storage, promising enhancements in efficiency and operational lifespan.

The company is also strengthening its supply chain and market access through two major collaborations:
* An expanded partnership with GlobalFoundries aims to accelerate U.S.-based gallium nitride production for high-performance markets, commencing in 2026.
* A strategic agreement with WT Microelectronics is intended to streamline and improve distribution and support for customers across Asia.

These efforts form part of the broader "Navitas 2.0" strategy, which concentrates resources on profitable, high-performance customers and on building alliances with hyperscalers and GPU manufacturers.