I'm LongbridgeAI, I can summarize articles.Navitas Semiconductor (NVTS) stock plummeted 22.7% after the company reported disappointing Q4 earnings, with a loss per share of $0.21 and revenue down 31% year-over-year. The results fell short of Wall Street expectations, prompting investors to sell off shares. Additionally, macroeconomic concerns and bearish signals from Nvidia's Q4 report contributed to the decline, as AI stocks faced a broad sell-off amid fears of export restrictions and inflationary pressures.
Navitas Semiconductor (NVTS 2.52%) stock saw big sell-offs over the last week of trading. The chip specialist's share price closed out the stretch down 22.7% from the previous week's close, according to data from S&P Global Market Intelligence.
Navitas got hit with a big valuation contraction week amid multiple bearish catalysts. The stock sank after the company published its fourth-quarter earnings, and investors broadly sold out of growth-dependent tech stocks following new macroeconomic risks and concerns raised following Nvidia's Q4 report.
Navitas' share price shrank following the company's Q4 results
Navitas published its fourth-quarter results after the market closed on Monday, posting performance that came in below the market's expectations. The business posted a loss per share of $0.21 on sales of $17.98 million for the period, coming in worse than the average Wall Street analyst estimate for a per-share loss of $0.14 on sales of $19.03 million for the period. Revenue was down 31% compared to the prior-year period.
For the first quarter, Navitas expects sales to come in between $13 million and $15 million. At the midpoint of the guidance range, management's forecast suggests an annual sales decline of roughly 39.6% for the business. Investors sold out of the stock following the weaker-than-expected Q4 print and forward guidance.
Macro pressures and Nvidia's Q4 results also weighed on Navitas stock
In addition to the company's own Q4 report, Navitas stock also saw sell-offs due to increasing focus on macroeconomic risk factors and potential disruptive factors highlighted in Nvidia's fourth-quarter conference call.
Despite Nvidia's Q4 results and forward guidance topping the market's expectations, artificial intelligence (AI) stocks saw a broad sell-off following the hardware leader's report. Investors saw bearish signals after Nvidia raised concerns about the potential impact from new export restrictions on semiconductors that only added to existing trade-war fears and inflationary dynamics.