Navitas Semiconductor (NVTS) shares have decreased by 9.9% in a single day. This recent decline highlights worries about substantial revenue reductions from deprioritized low-power products, along with broader geopolitical market tensions. However, sharp declines like this often lead to a more pressing question: is this weakness a temporary issue or indicative of more significant underlying problems?
CHONGQING, CHINA – JULY 30: In this photo illustration, a person holds a smartphone displaying the logo of Navitas Semiconductor Corporation (NASDAQ: NVTS), an American company specializing in gallium nitride (GaN) power ICs and energy-efficient semiconductor technologies, with the company’s logo visible in the background, on July 30, 2025 in Chongqing, China. (Photo illustration by Cheng Xin/Getty Images)
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Before evaluating its downturn resilience, let’s assess Navitas Semiconductor’s current standing.
- Size: Navitas Semiconductor is valued at $2.2 billion, with revenues of $57 million, and is presently trading at $10.17.
- Fundamentals: The last 12-month revenue growth is at -38.1%, and the operating margin stands at -181.4%.
- Liquidity: The company has a debt-to-equity ratio of 0.0 and a cash-to-assets ratio of 0.35.
- Valuation: Currently, Navitas Semiconductor shares are trading at a P/E multiple of -17.3 and a P/EBIT multiple of -34.9.
- Historically, the stock has provided a median return of 26.7% within a year after sharp declines since 2010. For further insights, see NVTS Dip Buy Analysis.
These metrics indicate a Weak operational performance, along with a Very High valuation – rendering the stock Very Unattractive. For more information, see Buy or Sell NVTS Stock.
This leads us to a crucial consideration for investors concerned about this drop: how resilient is NVTS stock if the markets decline further? This is where our downturn resilience framework becomes relevant. If NVTS stock drops an additional 20-30% to $7 – can investors hold on comfortably? It turns out that the stock has significantly underperformed compared to the S&P 500 index during various economic downturns, based on (a) the magnitude of the stock’s decline, and (b) the speed of its recovery. Below, we delve deeper into each of these downturns.
2022 Inflation Shock
- NVTS stock plunged 84.0% from a peak of $20.16 on 15 November 2021 to $3.22 on 27 December 2022 compared to a peak-to-trough decline of 25.4% for the S&P 500.
- The stock has not yet returned to its pre-Crisis peak.
- The highest price the stock has achieved since then is $17.10 on 20 October 2025, and it currently trades at $10.17.
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