Navitas Semiconductor Corp

Navitas Semiconductor Corporation reported second-quarter 2026 non-GAAP loss of 4 cents per share, in line with the Zacks Consensus Estimate, while revenues of $10.5 million beat estimates by 5.8% despite a 27.3% year-over-year decline. The company highlighted strong growth in high-power markets, which accounted for the majority of revenue, and projected that AI infrastructure would represent more than one-third of fourth-quarter sales. Management guided third-quarter revenues of $13 million to $14 million, implying 28% sequential growth, and non-GAAP gross margin of 38.7% to 40.7%. Navitas ended the quarter with $557 million in cash after raising approximately $373 million, and remains debt-free. Shares have risen 24.3% since the earnings report, and the consensus estimate has shifted upward by 25% over the past month.

Shares of DICK'S Sporting Goods plummeted 30.7% after the company reported second-quarter fiscal 2026 earnings of $3.53 per share, missing the Zacks Consensus Estimate of $3.78 per share. In contrast, Kura Oncology's shares jumped 9.6% after CEO Troy Wilson revealed in a regulatory filing that he was buying nearly 100,000 shares of common stock. Navitas Semiconductor gained 1.7% after announcing a deal to acquire Claros for $232.8 million in cash and stock. Walmart's shares declined 1% amid a broader retail decline.

Dick's Sporting Goods shares plunged more than 27% after the retailer reported revenue of $5.59 billion, below the $5.65 billion expected by analysts polled by LSEG, citing a challenging footwear market. Dynatrace rose 3% after Morgan Stanley upgraded it to overweight, while Shift4 Payments gained nearly 4% on a Wells Fargo upgrade to overweight. Moderna rallied 13% after Wolfe Research upgraded it to peer perform, and Marvell Technology jumped 5% after Susquehanna and Rosenblatt raised price targets. Advanced Micro Devices gained 5% after Raymond James upgraded it to strong buy with a $641 price target, and Kura Oncology climbed almost 10% after its CEO disclosed buying 100,000 shares. Navitas Semiconductor rose 5% after announcing a $232.8 million deal to acquire Claros.

Navitas Semiconductor, Alpha and Omega Semiconductor, and Wolfspeed are three sub-$50 chip stocks offering direct exposure to the AI power buildout shifting data center racks from 48V to 800V architectures. Navitas, designed into NVIDIA's 800V MGX rack ecosystem, guided AI infrastructure to represent more than one-third of total sales by year-end, with a one-year base-case target of $16.18. Alpha and Omega trades at a forward P/E of just 8, with AI and server revenue expected to grow more than 60% sequentially and a base-case target near $51. Wolfspeed, the post-restructuring wildcard, saw AI data center revenue more than double year-over-year and launched a fifth-generation SiC MOSFET, with a base-case target of $31.76.

Navitas Semiconductor agreed to acquire power management solutions provider Claros in a deal valued at up to approximately $232.8 million, sending its shares up 6% on Tuesday. The transaction includes about $216 million payable at closing in cash and Navitas Class A shares, with the remainder tied to business milestones over the following two years. Claros specializes in vertical power delivery and integrated voltage regulator technology for next-generation AI data centers, and the acquisition is expected to more than double Navitas’ identified 2030 serviceable addressable market to over $8 billion. Elsewhere, Bloom Energy and Intel rose after a congressional disclosure showed Nancy Pelosi bought positions in both companies, including shares and long-dated call options. Grand Canyon Education fell 5% after placing CFO Daniel Bachus on paid administrative leave in connection with a government investigation into a non-employee third party’s trading in the company’s stock.

Navitas Semiconductor announced a deal to acquire power management solutions company Claros in a transaction valued at up to approximately $232.8 million. The consideration includes about $216 million to be paid at closing in a combination of cash and shares of Navitas' Class A common stock, with the remainder paid in shares upon achievement of certain business milestones during the two years following closing. The deal has been unanimously approved by both boards and is expected to close before year-end. Claros specializes in vertical power delivery and integrated voltage regulator technology for next-generation AI data centers. The acquisition is expected to more than double Navitas' identified 2030 serviceable addressable market to over $8 billion, adding at least $3.5 billion from the rapidly growing VPD and IVR markets.

Nvidia management forecasted sales to accelerate from $81.6 billion in its most recent quarter to $91 billion in the next, while Navitas Semiconductor guided for $13.5 million in revenue for the upcoming quarter, which would mark its third consecutive quarter of rising sales. Nvidia has delivered positive quarter-over-quarter revenue growth across all eight of its recently reported consecutive periods, with revenue climbing from $30.0 billion in the quarter ended July 2024 to $81.6 billion in the quarter ended April 2026. Navitas Semiconductor experienced a steady decline in revenue from $21.7 million in the quarter ended September 2024 to a low of $7.3 million in the quarter ended December 2025, before rebounding to $8.6 million and then $10.5 million in the subsequent two quarters. The sales slump was attributed to a strategic pivot away from its mobile and consumer business in China, which had accounted for 60% of sales in 2024, to focus on artificial intelligence products. Navitas management stated that the fourth quarter of last year would be the bottom, and the recent upward trend validates the success of its AI strategy.

Magnachip Semiconductor reported second-quarter 2026 total consolidated revenue of $44.7 million, a 6.1% year-over-year decrease and a 3.3% sequential decline, while announcing a strategic partnership with Navitas Semiconductor to license GeneSiC technology for high-voltage silicon carbide applications. Gross profit margin was 19.3%, exceeding the guidance range of 17% to 19%, but adjusted operating loss widened to $7 million from $4.8 million a year earlier, and non-GAAP diluted loss per share was $0.13 compared with a loss of $0.05 in the prior-year period. The company guided third-quarter revenue to a range of $41.5 million to $45.5 million, representing a midpoint sequential decline of 2.7%, and gross margin to 17% to 19%, citing packaging constraints, lower customer volumes in certain custom applications, and continued pricing pressure on legacy products. CEO Chae Lee stated the goal is to transition from a follower to a leader by focusing on differentiated application-specific solutions, and management expects new-generation products to contribute at least 10% of revenue in the fourth quarter of 2026, up from 2% for full-year 2025. The company also established a $50 million at-the-market offering program and ended the quarter with cash of $87.9 million and total borrowings of $41.5 million.

Magnachip Semiconductor guided third-quarter revenue to a range of $41.5 million to $45.5 million and reiterated its goal for new-generation products to contribute at least 10% of revenue in the fourth quarter of 2026. CFO Shin Young Park attributed the sequential revenue decline to packaging constraints in the supply chain, lower customer volumes in certain custom applications, and an unfavorable product mix from continued pricing pressure on legacy products. The company also expects a planned electrical substation upgrade to lower fab utilization in the third quarter, creating a one-quarter lag effect that will cause fourth-quarter gross margin to decline slightly from the third quarter. Second-quarter revenue came in at $44.7 million, within the guidance range of $44.5 million to $48.5 million, while gross margin improved to 19.3%, exceeding the high end of the 17% to 19% guidance. CEO Chae Lee highlighted a new strategic partnership with Navitas Semiconductor to license its GeneSiC technology for high-voltage silicon carbide applications, with plans to qualify and manufacture those products in Magnachip's fab in Korea.

Navitas Semiconductor reported second-quarter 2026 non-GAAP loss of 4 cents per share, matching the Zacks Consensus Estimate and narrowing from a loss of 5 cents a year ago. Revenues of $10.5 million declined 27.3% year over year but beat the consensus estimate by 5.8%, with a 22% sequential increase driven by more than 50% year-over-year growth in high-power markets. High-power products accounted for the majority of second-quarter revenues, while mobile and low-end consumer sales declined, and the company expects those segments to become insignificant by year-end. Non-GAAP gross margin expanded to 39.5%, and Navitas ended the quarter with $557 million in cash and no debt. For the third quarter, the company guided revenues of $13 million to $14 million, implying 28% sequential growth at the midpoint.

Navitas Semiconductor is pursuing power delivery as a hidden opportunity in artificial intelligence. The company's gallium nitride and silicon carbide technology could become more important as data centers grow hotter, denser, and more expensive to operate, provided it can convert design wins into real adoption.

Small-cap stocks were the best-performing asset class in the first half of 2026, with the Russell 2000 index up 20% year to date, outperforming the S&P 500, Nasdaq, S&P 400 mid-cap index, and Russell 1000. Over the past 12 months, the Russell 2000 has returned 35%, compared to 27% for the Nasdaq and 20% for the S&P 500. The surge is driven by a rotation out of overvalued large-caps, an expanding AI supply chain benefiting small-cap semiconductor stocks like Aehr Test Systems, MaxLinear, Navitas, and Wolfspeed, a robust mergers and acquisitions market, and small-cap earnings expected to grow 38% to 48% in 2026, roughly double the S&P 500's rate. While declining rates have helped, potential Federal Reserve rate hikes and inherent volatility pose risks, making a small-cap ETF a prudent choice. An actively managed option like the Fidelity Enhanced Small-Cap Core ETF, up 26% year to date, offers diversified exposure.

Navitas Semiconductor has surged past Nvidia and Broadcom in 2026, driven by a new power-efficiency solution for AI data centers. In March, the company introduced a DC-DC power delivery board that converts 800 volts to 6 volts in a single stage, targeting Nvidia AI infrastructure. Morgan Stanley raised its price target to $12.50 from $4.20 in May, while Baird lifted its target to $20 from $9. The stock now trades at 92 times sales, far above its five-year average of 11.8.

Energy investor Andy Lubershein described electric vehicles as the keystone species of an emerging electro-industrial tech stack, arguing that EV unit volume drove down battery costs and scaled silicon carbide technology from cars to grid applications. Speaking on the Catalyst with Shayle Kann podcast, Lubershein outlined four building blocks—solar photovoltaics, lithium-ion batteries, electric vehicles, and power electronics—with power electronics acting as the connective tissue. Tesla reported first-quarter fiscal 2026 revenue of $22.39 billion, a 15.78 percent year-over-year increase, and an automotive gross margin of 21.1 percent, but its shares trade near $400.49 against a consensus analyst target of $420.55 and a trailing price-to-earnings ratio of 371. Among power-electronics plays, Wolfspeed has rallied 229.75 percent year-to-date, On Semiconductor is up 124.6 percent, and Navitas Semiconductor carries a price-to-sales ratio of 138 as it pivots to AI data centers and grid electrification.