Navitas Semiconductor Stock Plunges After $100 Million Private Placement Announcement

Navitas Semiconductor Corporation (Nasdaq: NVTS) experienced a significant stock decline on Friday, November 7, 2025, following the announcement of a $100 million private placement offering. The stock tumbled 14.5% in premarket trading and closed down 13.19% at $7.67, representing a sharp retreat from its previous close of $8.84.

The power semiconductor company, which specializes in gallium nitride (GaN) and silicon carbide (SiC) technologies, revealed it had entered into a definitive securities purchase agreement to sell approximately 14.8 million shares of Class A common stock at $6.75 per share, a price representing a substantial discount to recent trading levels.

This strategic capital raise is intended to support what CEO Chris Allexandre calls “Navitas 2.0,” a transformation focused on high-power markets including AI data centers, performance computing, energy infrastructure, and industrial electrification.

Below-Market Offering Triggers 13% Drop in Navitas Stock

The company entered into a securities purchase agreement to sell 14,814,813 shares of Class A common stock at $6.75 per share, with the private placement expected to close around November 10, 2025, subject to customary closing conditions. Needham & Company is serving as the sole placement agent for the transaction.

The offering is being conducted under Section 4(a)(2) of the Securities Act of 1933 and Regulation D, meaning the securities have not been registered and may only be resold pursuant to an effective registration statement or applicable exemption.

The sharp decline in Navitas’ stock price reflects investor concern about the dilutive nature of the offering. With approximately 14.8 million new shares being issued, representing a significant increase to the existing share base, current shareholders face potential dilution of their ownership stakes.

The $6.75 pricing represents a notable discount to the stock’s previous close of $8.84, signaling that the company needed to offer attractive terms to secure investor participation. Trading volume surged to 11.8 million shares on the day of the announcement, well below the average volume of 36.9 million shares, suggesting heightened selling pressure from existing shareholders.

Navitas stated it intends to use the net proceeds from the offering for working capital and general corporate purposes. The company has committed to file a registration statement with the Securities and Exchange Commission covering the resale of the shares within five business days of the purchase agreement, and to use commercially reasonable efforts to have it declared effective within 120 days.

This timeline provides some clarity to investors about when the newly issued shares may begin trading in the public market.

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Navitas Eyes Growth in AI and Energy Markets Despite Mounting Losses

As of the market close on November 7, 2025, Navitas Semiconductor traded at $7.67, down from an opening price of $7.77 and a previous close of $8.84. The stock has demonstrated significant volatility, with a 52-week range spanning from $1.52 to $17.79.

Despite the recent decline, the company has delivered impressive year-to-date returns of 112.75% and one-year returns of 245.23%, substantially outperforming the S&P 500’s gains of 13.46% and 11.73% respectively. The company’s market capitalization stands at approximately $1.614 billion, though it remains unprofitable with an EPS of -$0.64 and no P/E ratio.

CEO Chris Allexandre framed the capital raise as essential for supporting the company’s transformation into what he termed “Navitas 2.0.” This strategic pivot focuses on high-power markets that the company believes are shaping the future, including AI data centers, performance computing, energy and grid infrastructure, and industrial electrification.

The company’s GaNFast™ power ICs and GeneSiC™ silicon carbide devices position it to serve these growing markets, leveraging over 30 years of combined expertise in wide bandgap technologies and more than 300 issued or pending patents.

However, the company’s financial metrics reveal ongoing challenges. Navitas reported a Q3 2025 loss with revenue of $10.11 million and earnings of -$10.18 million. For the trailing twelve months, the company generated revenue of $56.6 million while posting a net loss of $125 million, resulting in a profit margin of -220.85%.

With total cash of $150.55 million as of the most recent quarter, the $100 million capital infusion provides significant runway to execute on its strategic transformation, though questions remain about the path to profitability. Analyst price targets range from $4.20 to $13.00, with an average target of $8.77, suggesting modest upside from current levels despite the recent selloff.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.