Navitas Semiconductor slumps as Nvidia halo effect fails to show up in its sales outlook just yet

Navitas Semiconductor, the tiny semiconductor company that went parabolic in late May after earning a place in Nvidia’s supply chain, is tumbling more than 15% after reporting second-quarter results.

The numbers themselves weren’t that bad: the adjusted loss per share of $0.05 and net revenues of $14.5 million were bang in line with consensus.

But after trumpeting its relationship with the $4 trillion chip designer, Navitas’ revenue outlook doesn’t show any signs of the hockey stick trajectory we’ve come to associate with anything near the AI boom.

Management said third-quarter net revenues would come in between $9.5 million and $10.5 million — that is, heading in the wrong direction. Analysts were looking for $15.6 million.

One reason for this disconnect might be found in the 10-Q, where the company states, “Our collaboration with Nvidia does not involve any binding commitments by Nvidia or any customer, and there is no guarantee that we will achieve any revenues as a result.”

Best-case scenario is that this is a timing issue. From the developer blog post where Nvidia listed Navitas as a silicon provider: “Full-scale production of 800 VDC data centers will coincide with NVIDIA Kyber rack-scale systems in 2027, ensuring seamless scalability for increasingly demanding AI models.”