Navitas shares drop 10.5% after rally and dilution filing

Shares of Navitas Semiconductor fell sharply on Friday as investors locked in profits following an extended rally and reacted to a regulatory filing that raised concerns about potential stock dilution. The stock was down approximately 10.5%, trading near $27.46.

The decline follows a period of exceptional gains for the semiconductor company. Navitas stock surged approximately 61% in May alone, contributing to a year-to-date rally of over 260%. This performance was driven by several positive catalysts, including first-quarter financial results that exceeded analyst expectations across key metrics such as revenue, earnings per share loss, and cash burn rate. Following the earnings report, multiple analysts raised their price targets and revenue projections for the company.

A central factor in the company's recent momentum is its strategic focus on gallium nitride (GaN) and silicon carbide (SiC) power semiconductors, which are critical components for advanced AI data centers. Navitas maintains a partnership with NVIDIA and recently showcased its 800-volt-to-6-volt DC-DC power delivery technology at NVIDIA's AI Factory MGX Ecosystem Showcase during the COMPUTEX 2026 exhibition in...