Navitas stock surge masks growing execution crisis in AI power market

Technology

JNK Research

JNK Supply Chain Research reveals serious problems hiding beneath the surface as NVTS transitions chip production from TSMC to PSMC. The new factory has lower quality standards and worse yields. Critical 650V GaN devices won't reach mass production until late 2026 or early 2027. Competitor Infineon already ships 800V power solutions to AI data centres. NVTS remains in development while the market moves forward. Big customers like NVIDIA are diversifying suppliers instead of depending on NVTS. The company has few shipping products in hyperscale AI infrastructure. NVTS pioneered GaN technology with 250 million units shipped. But execution matters more than innovation when competitors deliver working products first. ​NVTS is one of 23 companies JNK tracks in the analog space. Click here for recent results.

- 31 October, 2025

Infineon Technologies (IFX GR) Germany

Technology

Arete Research

The guidance reset follows a well-trodden path by peers this earnings season and will come as no surprise to the market. There has been much speculation around this print and IFX (and the broader autos / industrial semis space) has been a shorting haven vs. a rampaging AI long trade. With the much-awaited cut confirmed, profitability remaining resilient (no gross margin reset back into the mid-30’s) and the trough quarter behind us, Arete thinks the path should now be clear to own IFX for a cyclical recovery, as well as structural growth.

- 17 May, 2024

Infineon Technologies (IFX GR) Germany

Technology

ROCGA Research

ROCGA’s cash-flow-returns-on-investments based online platform provides a systematic framework to compare, value and gain insight into companies. IFX is on a list of undervalued companies, along with others, including Roche and Kering. Apart from their proprietary economic returns and conventional valuation indicators, data points such as EV/IC against ROIC/WACC are also available. Their interactive tools allow you to model and value one of 2000 companies across Europe and the US. A free consultation and trial can be arranged on request.

- 08 March, 2024

Infineon Technologies (IFX GR) Germany

Technology

Arete Research

Using IFX’s new guidance and Arete’s existing growth assumptions for FY25 which reflect PSS and CSS still below FY23 annual peaks, 24% growth in EV power and ADAS revenues (vs. 34% in FY24) leaving the rest of autos still down 3% from their ’23 levels and assume segment margin still below peak ’23, this implies an adjusted EPS of above €3 leaving IFX on 11x FY25 vs. its 10-year P/E average of 18x. With the needed financial reset in place, Arete sees the path clear for investors to own a heavily discounted but very well positioned growth story into the coming autos / industrial upturn. TP €57.2 (75% upside).

- 09 February, 2024

Infineon Technologies (IFX GR) Germany

Technology

Arete Research

Jim Fontanelli thinks IFX’s portfolio has one of the most defensive revenue mixes in semis going into a 2023 demand environment where consumer is the lead concern. He also believes IFX’s share loss headwind in EV’s (in the transition from IGBT to SiC) is coming to an end as it brings additional SiC capacity on-line through 2023 and 2024. IFX has seen a notable de-rating over the past 18-months - moving from a 5-year average 30% P/E premium to the SOX to a 16% discount. Jim thinks this is harsh, given IFX’s total and autos revenue growth has outperformed peer average. TP €39.30 (45% upside).

- 19 August, 2022