--- title: "Navitas Semiconductor (NVDA) Could Be 11% Undervalued After Its AI Power Chip Push" type: "News" locale: "en" url: "https://longbridge.com/en/news/293448022.md" description: "Navitas Semiconductor (NVTS) faces a patent lawsuit from Wolfspeed while pushing into AI power chips. Despite a recent 46.61% stock drop, it trades 13% below analyst targets, with some narratives suggesting an 11.3% undervaluation based on a $14.46 fair value and a $450 million backlog. However, risks include the lawsuit, revenue softness in EV/solar markets, and a high P/B ratio compared to peers." datetime: "2026-07-22T09:12:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293448022.md) - [en](https://longbridge.com/en/news/293448022.md) - [zh-HK](https://longbridge.com/zh-HK/news/293448022.md) --- # Navitas Semiconductor (NVDA) Could Be 11% Undervalued After Its AI Power Chip Push ## Why the Wolfspeed lawsuit matters for Navitas Semiconductor The recent lawsuit filed by Wolfspeed against Navitas Semiconductor (NVTS) has put intellectual property questions alongside the company’s push into AI related power chips, giving investors another factor to weigh when assessing the stock. Navitas disputes Wolfspeed’s infringement allegations and plans to defend its GaN and SiC products in court, while reiterating its focus on AI data centers, grid infrastructure and other high power applications as key areas of business attention. See our latest analysis for Navitas Semiconductor. The Wolfspeed lawsuit arrives after a sharp 46.61% decline in Navitas Semiconductor’s 30 day share price return, even though its year to date share price return is 53.04% and its 1 year total shareholder return is 48.78%, so recent momentum has clearly cooled following a strong run. If you are looking beyond Navitas Semiconductor in the same broad theme, this could be a good moment to see what else is moving across 54 AI infrastructure stocks After a 46.61% slide in 30 day returns, Navitas Semiconductor now trades about 13% below the average analyst price target. The next step is to see whether that discount reflects sensible caution or mispricing. ## Most Popular Narrative: 11.3% Undervalued With Navitas Semiconductor last closing at $12.83 against a narrative fair value of $14.46, the current price sits below what the most followed thesis implies. > _The company reported a $450 million backlog of design wins, expected to transition into revenue in the coming years. This high win rate provides increased visibility for future growth and is likely to positively impact revenue and earnings._ Read the complete narrative. Want to see what kind of revenue ramp and margin shift that backlog is assumed to support? The narrative leans on bold growth, rising efficiency and a stretched future earnings multiple to get to that fair value. **Result: Fair Value of $14.46 (UNDERVALUED)** Have a read of the narrative in full and understand what's behind the forecasts. However, there are clear pressure points for the Navitas Semiconductor story, including the Wolfspeed patent lawsuit and ongoing revenue softness in EV, solar, and industrial markets. Find out about the key risks to this Navitas Semiconductor narrative. ## Another View on Navitas Semiconductor’s valuation The fair value narrative for Navitas Semiconductor points to an 11.3% upside to $14.46, but the market is also clearly paying up on today’s numbers. On a P/B of 7.5x, Navitas trades well above the US Semiconductor industry at 5.4x and peers at 4.5x, which raises questions about how much optimism is already in the price. For investors, that premium can either signal confidence in future growth or leave less room for error if progress is slower than expected. The key question is whether you think the current balance between potential and execution risk feels comfortable or stretched. See what the numbers say about this price — find out in our valuation breakdown. NasdaqGM:NVTS P/B Ratio as at Jul 2026 ## Next Steps With the mixed sentiment around Navitas Semiconductor, this is a moment to move quickly, review the full picture, and form your own stance using the 1 key reward and 4 important warning signs. ## Looking for more investment ideas beyond Navitas Semiconductor? If the Navitas Semiconductor story has your attention, do not stop here. Broaden your watchlist with a few targeted ideas that many investors leave on the table. - Spot potential growth early by reviewing 21 elite penny stocks with strong financials that combine smaller market caps with financial profiles that may be stronger than many expect from this corner of the market. - Hunt for value by scanning 50 high quality undervalued stocks where pricing, cash flows, and balance sheets may line up more attractively than the broader market. - Prioritize resilience by focusing on 81 resilient stocks with low risk scores that show lower risk scores while still offering exposure to long term themes you care about. _This article by Simply Wall St is general in nature. **We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.** It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._ ### Valuation is complex, but we're here to simplify it. Discover if Navitas Semiconductor might be undervalued or overvalued with our detailed analysis, featuring **fair value estimates, potential risks, dividends, insider trades, and its financial condition.** Access Free Analysis ### Related Stocks - [NVTS.US](https://longbridge.com/en/quote/NVTS.US.md) - [NVTX.US](https://longbridge.com/en/quote/NVTX.US.md) - [WOLF.US](https://longbridge.com/en/quote/WOLF.US.md) ## Related News & Research - [Navitas Stock Lost 40% this Month — Earnings Could Decide the Next Move](https://longbridge.com/en/news/293953810.md) - [Navitas Semiconductor is targeting AI's hidden power problem](https://longbridge.com/en/news/293825682.md) - [What a Major Anthropic Chip Deal Really Means for AMD Stock](https://longbridge.com/en/news/293846559.md) - [AI investing genius Leopold Aschenbrenner owns 20% of this AI stock. 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