Navitas Semiconductor Falls 15% as AI Power Chip Stocks Slide Post-Midterms

Navitas Semiconductor shares dropped 15% on Thursday as a broad retreat in power chip suppliers tied to artificial intelligence data centers reversed earlier gains sparked by an earnings beat.

The downturn reflected sudden post-election jitters on Wall Street, where stronger-than-expected Democratic performances in the midterm elections stirred concern over potential slowdowns in federal support and timelines for domestic AI infrastructure builds, according to reporting published by Yahoo Finance (https://www.tikr.com/blog/navitas-sinks-15-as-ai-chip-stocks-slide-after-midterms?ref=yahoofinance&tlnk=yf-261105-pvcvf42r&.tsrc=rss).

The decline swept broadly through power semiconductor vendors regardless of quarterly execution. STMicroelectronics dropped 12% despite generating $3.76 billion in quarterly revenue, up 17.9% year-over-year. Onsemi slipped 11% even after posting a 175% year-over-year surge in third-quarter AI data-center sales and advancing its acquisition of Ferric to target processor-level sockets. Microchip Technology, which partnered with Navitas in October on an 800-volt power reference design, fell 13%.

The selloff arrived just two days after Torrance, California-based Navitas posted third-quarter revenue of $14.0 million, a 33% sequential increase from the second quarter. The company also bumped its full-year 2026 revenue guidance to $49.1 million, clearing consensus expectations of $47.7 million, while noting a 2.0 book-to-bill ratio and an order backlog extending into mid-2027.

Yet the gap between Navitas's current commercial scale and profitability remains wide. Guided fourth-quarter revenue of $16 million stands well short of projected quarterly operating expenses of $25.0 million, which include costs from its recent acquisition of Claros. Analysts estimate the business requires more than $60 million in quarterly revenue to reach operational breakeven.

Navitas investors are effectively underwriting a 2027 inflection, when management projects AI infrastructure revenue will roughly triple as hyperscalers adopt high-voltage 800-volt power delivery architectures. Thursday's drop compressed Navitas's forward price-to-sales multiple to roughly 28 times, down from 34 times prior to the rout and well off its peak of 162 times in May.

Power chip investors now await Nvidia's financial report on Nov. 17, which serves as the industry's next crucial pulse check on the timing and adoption rate of high-voltage server power architectures.