Trade Alert: Bought Navitas (NVTS) $4.17

Initially recommended on 04/26/2024 to buy between $4.25 and $4.50 as a major beneficiary of power savings for datacenter semiconductors/GPUS, the stock had fallen below $4, on weaker than expected sales for Q1 and Q2 2024. The majority of Navitas’s revenues comes from cell phone chargers, which is now recovering from a cyclical trough and expected to do much better in 2025. I love that they are diversified enough in 5 end markets, including auto, solar, industrial and now datacenter, which should become a big and fast-growing segment. The same weaknesses of high exposure to China, minnow among larger competitors and not breakeven for another year remain but at this price the downside is limited.