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    Navitas Semiconductor (NVTS)

    NVTS Q3 2024: GaN Cross-License with Infineon and Six New EV Wins

    Reported on Jun 20, 2025 (After Market Close)
    Pre-Earnings Price$2.61Last close (Nov 4, 2024)
    Post-Earnings Price$2.25Open (Nov 5, 2024)
    Price Change
    $-0.36(-13.79%)
    • Dual Sourcing Partnership with Infineon: The collaboration, supported by a broad-based GaN cross-license, reduces sole-sourcing risks for customers and accelerates adoption in high-volume markets such as AI data centers and EV, potentially unlocking significant market opportunities.
    • Robust Design Wins and Expanding Pipeline: The call highlighted multiple new design wins across key markets including mobile chargers, EV onboard and roadside chargers, and AI data centers, signaling strong future revenue and market diversification.
    • Operational Efficiency and Cost Reductions: The company is implementing headcount cuts (around 14% reduction) and expense savings (approximately $2 million per quarter) to streamline operations and accelerate the path to profitability while reinvesting in strategic growth areas.
    • Lower near-term revenue growth: Q&A discussions highlighted expectations for softer revenue in Q1 due to seasonality (with last year’s Q1 down 11%) and delays in customer projects pushing revenue impacts into later quarters.
    • Uncertain contribution from dual sourcing with Infineon: The new low-voltage GaN collaboration with Infineon introduces potential risks, as timelines are not fully clear and first production ramps are expected only late next year.
    • Margin pressures from pricing dynamics: Analysts noted competitive pressures in the smartphone market—with a shift toward lower-powered, entry-level chargers potentially eroding pricing power and margins.
    1. Growth Outlook
      Q: When will growth recovery occur?
      A: Management expects Q1 to be seasonally soft, with recovery picking up in Q2/Q3 next year thanks to strong design wins and a healthier pipeline.

    2. Cost & Restructuring
      Q: How do cost cuts impact profitability?
      A: They are streamlining operations with a 14% headcount reduction and saving about $2 million per quarter in expenses, which should accelerate the move toward profitability.

    3. Margin Guidance
      Q: How will margins stay flat despite revenue softness?
      A: Improved mix in the mobile segment is offsetting lower revenue in higher-power areas, keeping gross margins near 40%.

    4. Low-voltage GaN Partnership
      Q: What is the dual sourcing agreement with Infineon?
      A: A broad-based GaN cross-license has been arranged with Infineon, ensuring two reliable sources for low-voltage (48V) GaN products and boosting customer confidence.

    5. Market Development (EV & Data Centers)
      Q: How are EV and data center opportunities progressing?
      A: There are notable design wins in EV—including six new designs in Q3—and new low-voltage GaN for AI data centers, with samples already underway and production expected late next year.

    6. Pricing Strategy
      Q: How does pricing pressure affect new design wins?
      A: Despite aggressive pricing due to market softness, renegotiated cost structures in both GaN and silicon carbide technologies are helping maintain margins and secure business.

    7. Automotive Segment
      Q: How is the automotive market trending?
      A: Momentum is building with increasing design wins for onboard and roadside chargers, indicating a gradual pickup in EV demand despite longer lead times.

    8. Channel Inventories
      Q: What is the status of silicon carbide channel inventories?
      A: Inventories are declining, reflecting a positive trend that should support recovery in high-power market segments.

    9. Liquid Cooling Impact
      Q: Will liquid cooling affect semiconductor demand?
      A: Liquid cooling is seen as a positive development, as it enables higher power budgets that support the need for efficient semiconductor solutions.

    10. Appliance & Industrial Outlook
      Q: How do appliances fit into the new strategy?
      A: Although focus is on mobile, EV, and data centers, management will continue pursuing growth in appliance and industrial segments through numerous design wins.

    Research analysts covering Navitas Semiconductor.