Jim Cramer’s Lightning Rounds: 12 Stocks Under the Spotlight

10. Navitas Semiconductor Corporation (NASDAQ:NVTS)

Number of Hedge Fund Holders: 8

Talking about Navitas Semiconductor Corporation (NASDAQ:NVTS), Cramer said:

“… I’ve gotta tell you, that company’s losing a lot of money. I think you can take a flyer at three bucks but understand, it’s losing a lot of money and it’s a flyer.”

Navitas Semiconductor (NASDAQ:NVTS) specializes in the design, development, and marketing of advanced semiconductor products. These components are primarily used in power conversion and charging applications. In its third quarter, reported in November, the company generated $21.7 million in revenue, a figure that remained essentially unchanged compared to the same period the previous year.

However, the company reported a significant operating loss of $29 million for the quarter, compared to the $28.6 million loss recorded in the third quarter of 2023 and the $31.1 million loss from the second quarter of 2024. This financial performance has been attributed to ongoing softness in some of its key end markets and delays in customer projects, which have contributed to a less favorable outlook for the company in the near term.

Navitas Semiconductor (NASDAQ:NVTS) has projected a sequential decline in revenue for the fourth quarter, reflecting challenges in the mobile business as well as continued delays in customer projects. In response to these challenges, the company has initiated a cost-reduction plan aimed at improving its financial position.

This plan is expected to save the company $2 million per quarter and will focus on streamlining the organization while concentrating on high-growth sectors such as AI data centers, electric vehicles, and mobile applications. As part of this plan, the company will reduce its workforce by approximately 14%, equivalent to about 45 employees, as it works to align its operations with its path toward profitability.