Navitas Semiconductor: Patent Dispute Compounds a Steep Slide Ahead of Key Earnings Report

Navitas reports Q2 results amid Wolfspeed patent litigation, with stock down 34% in a month but operational momentum strong in GaN and SiC for AI data centers.

The legal battle between Wolfspeed and Navitas Semiconductor has turned an already punishing month for the stock into a deeper rout, but the next major test for the company may come from the earnings call rather than the courtroom. On July 27, Navitas reports second-quarter results after the market close, giving investors a chance to weigh the operational momentum against the patent cloud that has wiped out more than a third of the share price in four weeks.

Wolfspeed filed its complaint around July 10 in the U.S. District Court for Delaware, alleging that Navitas infringes five patents covering gallium-nitride and silicon-carbide technologies. The products named include the GaNFast, GaNSlim and GaNSafe families of GaN transistors, as well as the GeneSiC SiC MOSFETs and SiCPAK modules — the very lineup that underpins Navitas’s growth story. Navitas responded two days earlier with a statement branding the claims “baseless” and vowing to defend itself vigorously, a position it reiterated after the filing became public.

The stock closed Friday at €11.70, down 6.4% on the day and 10.69% for the week. The monthly decline stands at 34.27%, a slide that has left the shares nearly 60% below the 52-week high of €29.20 hit in May. The 50-day moving average, now €18.58, sits more than 37% above the current price — a technical gap that underscores how abruptly the trend shifted. The annualized volatility has surged to 121.24%, while the relative strength index of 33.7 points to oversold conditions that could attract bargain hunters but offer no guarantee of a rebound.

Yet the depths of the sell-off obscure a notable fact: from its February low of €6.15, the share price is still up over 90%, meaning any investor who bought at the trough remains comfortably ahead. The market capitalization stands at €3.02 billion, and the analyst consensus price target of €12.67 implies an 8.3% upside from Friday’s close — a sign that at least some on Wall Street see fundamental value that the current panic has discounted.

Operationally, the company is pushing ahead. Revenue rose 18% sequentially in the first quarter, propelled by a 50% jump in AI infrastructure revenue as data centers demand more efficient GaN and SiC components for high-power architectures. Navitas recently secured a commercial supply deal for GaNFast and GeneSiC chips used in 800-volt AI data-center designs. The technology pipeline remains active: a 20-kilowatt GaN platform for converting 800 volts to 6 volts launched in the first quarter, and new fifth-generation SiC products for AI power supplies have entered customer testing, with several projects approaching commercial production.

The contrast between the share price and the business trajectory highlights the dilemma for investors. Navitas frames the Wolfspeed lawsuit as a competitive tactic by a rival that cannot match its technology on the merits. But patent litigation in semiconductors routinely drags on for years, with appeals and countersuits as standard fare. Until there is clarity, the stock’s path will be shaped as much by legal filings as by financial results.

The upcoming earnings call, featuring CEO Chris Allexandre and CFO Tonya Stevens, offers a venue for management to reinforce its growth narrative and address the dispute head-on. In the meantime, the market will also watch sector bellwethers such as ASML for broader industry cues — and any fresh statement from Navitas on its legal defense strategy is likely to trigger an immediate price response.