Navitas Semiconductor (NVTS) Could Be 112% Overvalued As Russell Index Exit Jolts Shares - simplywall.st

Navitas Semiconductor (NVTS) was removed from several Russell equity indexes on June 27, 2026, triggering potential rebalancing by index-linked funds and impacting short-term trading dynamics. Despite... Read original →

Navitas’ removal from Russell indexes signals waning market tolerance for its inflated valuation. Technically, while its GaN power devices align with EV and renewable energy efficiency demands, reliance on foundry capacity in Taiwan, China and Southeast Asia exposes supply chain fragility amid geopolitical friction. Regulatory shifts like the U.S. CHIPS Act raise domestic manufacturing costs, yet Navitas’ fabless model disqualifies it from subsidies, squeezing margins further. Rivals Texas Instruments and ON Semiconductor are aggressively integrating SiC/GaN lines to capture design wins during this volatility. Over the next 12–24 months, unless Navitas converts technical leadership into consistent revenue, a second valuation correction looms—the current share price already prices in all growth through 2028, making it a catalyst for broader de-rating across smaller GaN players.