Navitas Semiconductor Corporation (NASDAQ:NVTS) shares tumbled more than 13% during Tuesday's trading session. The decline follows the company's announcement of a significant new capital-raising initiative.

The Nasdaq is down 1.86% while the S&P 500 has shed 0.82%.

• Navitas Semiconductor stock is taking a hit today. What’s weighing on NVTS shares?

The $125M Equity Offering

Navitas filed a prospectus supplement to sell up to $125,000,000 of its Class A common stock. The company entered into a Sales Agreement with Craig-Hallum Capital Group LLC and UBS Securities LLC.

These agents will facilitate sales from time to time through an at-the-market offering.

Dilution Concerns Hit Sentiment

Traders are reacting to the immediate impact on share value. According to the filing, the offering price may exceed the net tangible book value per share. Navitas noted that “you would experience immediate dilution of $16.83 per share” based on the May 8 closing price of $18.20.

Strategic Use of Proceeds

The semiconductor firm plans to use the net proceeds for working capital and general corporate purposes. This includes potential acquisitions of complementary businesses. However, the company clarified it currently has “no agreements or commitments to complete any such transaction.”

Critical Levels To Watch for NVTS Stock

Even after Tuesday's pullback, Navitas is still in a strong longer-term uptrend: it's trading 21.8% above its 20-day SMA ($15.86) and 105.5% above its 200-day SMA ($9.40).

RSI is the key momentum lens here, and at 71.94 it remains in overbought territory.

From a structure standpoint, the 20-day SMA remains above the 50-day SMA (bullish), and the golden cross that formed in June 2025 (50-day above 200-day) supports the longer-term trend narrative.

NVTS Stock Price Activity: Navitas Semiconductor shares were down 16.75% at $18.96 at the time of publication on Tuesday, according to Benzinga Pro data.

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