This Chip Stock Plummeted 92% After Breaking a Major Promise. Now, an Nvidia Partnership Is Fueling a Massive Comeback.

A Tale of Two Extremes

Imagine watching a stock you believed in freefall, shedding an astonishing 92% of its value. For early investors in Navitas Semiconductor (NASDAQ: NVTS), this wasn't a hypothetical nightmare; it was a reality. After soaring to an all-time high of $20.16 in November 2021, the chipmaker's stock embarked on a brutal descent, eventually hitting rock bottom at a mere $1.52 per share this past April.

The market's punishment was swift and severe, but it wasn't without reason. The company had fundamentally broken its biggest promise to investors, creating a crisis of confidence that sent shareholders fleeing for the exits.

The Billion-Dollar Forecast That Wasn't

Before going public through a SPAC merger in late 2021, Navitas painted a dazzling picture of its future. The company boldly projected that its revenue would surge from just $12 million in 2020 to a staggering $308 million by 2024. This aggressive forecast was a key part of the investment thesis.

However, reality fell dramatically short. When 2024 arrived, Navitas reported revenue of only $83 million. This colossal miss—a gap of over $225 million from its own target—shattered investor trust and was the primary catalyst for the stock's catastrophic collapse. For two years, the company's growth engine appeared to have completely stalled out, leaving its ambitious plans in tatters.

A Lifeline from an Industry Titan

Just when it seemed the story was over, a new chapter began. From its April lows, Navitas stock has staged a remarkable rally, surging to trade around the $6 mark. What's fueling this sudden and explosive comeback? The answer lies in a powerful new alliance with none other than AI juggernaut Nvidia.

This new partnership has injected a massive dose of optimism into the company's narrative, suggesting that Navitas may have found the catalyst it needs to finally break out of its rut and achieve the growth it once promised. The association with a market leader like Nvidia provides a level of validation and a potential pathway to high-growth markets that the company desperately needed.

Is the Hype Already Priced In?

Despite the excitement, a cloud of caution remains. Skeptics argue that too much of this potential future success is already baked into the stock's current, recovered valuation. The central concern is that investors are paying today for growth that is still speculative and far from guaranteed. After being burned by missed forecasts in the past, the critical question is whether this time is truly different. Navitas is now at a pivotal crossroads: will the Nvidia partnership be the rocket fuel for a sustained ascent, or is the recent rally a speculative bubble built on hope rather than concrete results?