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Navitas Semiconductor Shares Fall After Wolfspeed Files Patent Lawsuit
Shares of Navitas Semiconductor (NVTS) fell more than 6% in morning trading after competitor Wolfspeed filed a patent infringement lawsuit. The suit, submitted late Tuesday in the U.S. District Court for the District of Delaware, alleges that numerous Navitas products infringe upon five of Wolfspeed's patents concerning wide-bandgap semiconductor technology. The accused products include the company's GaNFast, GaNSlim, and GeneSiC lines, placing much of its power-chip portfolio under legal scrutiny.
Navitas issued a statement in response, characterizing the lawsuit's accusations as "baseless." The company stated its intention to "vigorously defend itself" and expressed confidence that it would prevail in the litigation.
The legal filing compounds existing pressures on Navitas stock. The company has a $500 million at-the-market equity program that has raised concerns about share dilution among investors. This is coupled with a revenue trajectory that has contracted over the past year.
AdThe broader market also contributed to the negative sentiment, with the S&P 500, Dow Jones, and NASDAQ all declining during the session. The combination of the lawsuit and market weakness pushed Navitas shares from an open of $13.40 to a session low of $12.88. The company is scheduled to report its second-quarter earnings on July 27.