Navitas Semiconductor shares dropped 6.4% in morning trading following a patent infringement complaint filed late Tuesday by competitor Wolfspeed in the U.S. District Court for the District of Delaware. Wolfspeed's filing alleges that five of its patents, which cover foundational wide-bandgap semiconductor technology, are infringed by a broad range of Navitas products.
The products named in the complaint include Navitas's GaNFast, GaNSlim, and GaNSafe families of gallium nitride FETs, as well as its GeneSiC MOSFETs and SiCPAK silicon carbide modules. Collectively, those product lines represent the company’s commercially significant power-chip offerings, and Wolfspeed's allegations place much of Navitas's portfolio under legal scrutiny.
Navitas issued a prompt response today, calling the complaint baseless and stating it intends to vigorously defend itself. The company expressed confidence that it would prevail in the litigation, according to its statement.
The lawsuit arrives against a backdrop of pre-existing concerns among investors. Navitas has an at-the-market equity shelf program of up to $500 million that has raised dilution worries. At the same time, the company's revenue trajectory has contracted sharply over the past year, which has left analysts assigning widely varying price targets, ranging from $13 on the cautious end to $21 on the more optimistic side.
Market conditions offered little cushion. During the same trading session, the S&P 500 fell 0.6%, the Dow Jones dropped 1.3%, and the NASDAQ slipped 0.5%. That broader weakness heightened pressure on a high-multiple, momentum-driven semiconductor name such as Navitas.
Market participants are also eyeing Navitas's next scheduled catalyst: the Q2 2026 earnings report due July 27. Analysts covering the company currently model a loss of $0.05 per share on revenue of roughly $10 million for the quarter.
On the trading floor, the convergence of the surprise competitor lawsuit, the weak broader market, and existing fundamental concerns over profitability and potential dilution produced a wave of selling pressure. Navitas shares opened at $13.40 and touched an intraday low of $12.88, well below the stock's 52-week high of $34.17.
The company and its stakeholders now face legal uncertainty surrounding core intellectual property, ongoing scrutiny over funding and dilution, and near-term operational milestones that may influence investor sentiment. How these factors evolve ahead of the July 27 earnings release will determine whether the recent setback proves temporary or signals a deeper re-rating of the stock.
Summary
Navitas fell after Wolfspeed sued over alleged infringement of five wide-bandgap semiconductor patents, naming most of Navitas's power-chip product lines. The legal action compounds existing investor concerns about a $500 million at-the-market shelf program and sharply contracting revenues, while broader market weakness added selling pressure ahead of Navitas's Q2 2026 earnings report scheduled for July 27.