Navitas Semiconductor Corp. (NASDAQ:NVTS) stock is under pressure in Wednesday’s premarket session after a key competitor filed a patent infringement lawsuit against the company.
On Tuesday, Wolfspeed Inc. (NYSE:WOLF) filed the lawsuit in the U.S. District Court for the District of Delaware, alleging that Navitas infringed multiple patents related to its wide-bandgap semiconductor technology. Wolfspeed said the action is intended to protect its intellectual property portfolio.
Multiple Core Product Lines Target of Infringement Suit
The lawsuit asserts that multiple Navitas product lines infringe five Wolfspeed patents, specifically U.S. Patent Nos. 8,169,005; 10,998,418; 10,886,396; 10,749,443 and 11,888,392.
According to Wolfspeed, the accused products encompass major Navitas product families, including its gallium nitride (GaN)-based FETs—such as the GaNFast, GaNSlim, and GaNSafe lines—along with GeneSiC MOSFETs and SiCPAK modules.
Technical Picture Remains Mixed
Navitas remains in a longer-term uptrend, but its short-term trend is still under pressure. The stock is trading 34.8% below its 20-day simple moving average of $19.99 and 38.5% below its 50-day simple moving average of $21.19. However, it remains about 5% above its 200-day simple moving average of $12.41.
The moving average convergence/divergence (MACD) indicator remains below its signal line, while the histogram is negative. That suggests bearish momentum is still in place.
Traders are watching support around $12.50. A break below that level could push the stock beneath its 200-day moving average and increase the risk of further losses. On the upside, reclaiming the 100-day simple moving average near $15.48 would indicate improving momentum.
Company Focus And Earnings Outlook
Navitas develops gallium nitride (GaN) and silicon carbide power semiconductors used in fast charging, electric vehicles, renewable energy and industrial applications.
The company’s next major catalyst is its scheduled earnings report on July 27. Analysts expect a loss of 5 cents per share on revenue of $9.97 million, compared with revenue of $14.49 million in the same quarter last year.
Wall Street maintains a Buy consensus rating with an average price forecast of $18. Recent analyst actions include Rosenblatt raising its price forecast to $13 while maintaining a Neutral rating, Needham raising its price forecast to $21 and reiterating Buy, and Baird increasing its price forecast to $20 while maintaining an Outperform rating.
NVTS Stock Price Activity: Navitas Semiconductor shares were down 6.86% at $13.03 during premarket trading on Wednesday, according to Benzinga Pro data.
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